year 12 - unit 1 business aims, objectives and organisation
DESCRIPTION
Year 12 - Unit 1 Business Aims, Objectives and Organisation. September 5 th 2008. * Keywords sheet will be used throughout lessons – stick in front of note books Look out for every opportunity to fill them in!. Learning Objective - PowerPoint PPT PresentationTRANSCRIPT
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Year 12 - Unit 1
Business Aims, Objectives and Organisation
September 5th 2008
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*Keywords sheet will be used throughout lessons – stick in front of note books
Look out for every opportunity to fill them in!
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Learning Objective
To learn what are typical aims and objectives of business organisations.
Learning Outcomes
All of you will be able describe what a mission, aim & objective is.
Most of you will be able to give examples of business objectives.
Some of you will be able to suggest how a business can meet its objectives.
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Starter
“A business is an organisation which provides goods or services for its customers”
Differences between goods and services. This will help in finding a businesses direction.
Activity: BIN CHUCKING!
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It might be easier to look at it this way:Do the following businesses provide
goods or services or both?1. Thomas Cook2. Cadbury’s3. Direct Line Motor Insurance4. Coca-Cola5. Ferrari6. Tesco
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Mission
A mission statement is a formal statement setting out the aims of the business.
E.g. Microsoft’s mission statement is...“To enable people and businesses throughout the world to realize their
full potential.”
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On a Mission
Can you guess which companies have the following missions…
“To make people happy.”
Disney
“To refresh the world”
Coca-Cola“To bring inspiration &
innovation to every athlete in The world.*
*If you have a body you are an athlete
Nike
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The Type of Business determines the Aims and Objectives it sets
Mining, farming, market gardening, fishing, forestry
Fruit into pies or juice, wood into chipboard, metal into cars
Not manufactured – catering, shops, insurance, travel, advertising
1. Primary: Extracting natural resources. Raw
materials
2. Secondary: Manufacturing Products. Processing raw materials into manufactured products
3. Tertiary: Providing Services
Businesses are generally put into 1 of 3
Industrial Sectors:
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The Type of Business cont...
OwnershipKey word/term Definition Examples
•Public Sector
•Private Sector
Public corporations - Post Office, BBCGovt. Dept – Civil ServiceLocal Authorities - Councils
Sole Traders PartnershipsFranchisesLimited Companies
Government owned or govt. Controlled bodies. Restricted by government guidelines – ‘value for money’ rather than large profits. Job opportunities & secure employmentDirectly or indirectly in private ownership. General aims are to maximise sales, profits and market share.
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Activity break
Take 5 minutes to fill in the table with as many businesses/companies you can list on the activity sheet 1
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Aims
Aims are what a business set out to achieve
The most important aim of a private business is to make a profit by sellingor providing products to people who will pay for them.
If a private business does not make a profit, they will get into trouble financially and will eventually go bankrupt.
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Aims: generally long term but can change through the years...1955 Aims: To survive in business for first year, To sell as many good as possible, To make a profit, To concentrate on selling to the local community
21st Century Aims:To expand and beat the worldwide competitionTo Maximise sales and profitTo help charitiesTo be environmentally friendly
Corporate social responsibilities/sustainability
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Objectives
The objectives are the goals a business sets itself in order to achieve it’s aims
An objective is a short-term goal or target which will help to achieve an aim.
An objective must be measurable, so that a business can tell what has been achieved.
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Check point!
An Aim or purpose expresses, in general terms, what the __________ sets out to do in the _____ term
An Objective is a specific ____ the business wishes to achieve to meet the _ _ _
A Business will succeed in its _ _ _ through the achievement of a variety of __________’s
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Linking Aims & Objectives
Each aim may have several objectives, e.g. a company who wishes to dominate the market, may have the following objectives:Introduce new productsImprove the efficiency of the advertisingRaise money to develop new productRaise money for new premisesRecruit a new marketing manager
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Review Activity – 20 mins
In pairs, choose either:1. An Existing Business/Company (where you or
someone you know works or would like to) or2. Invent your own Business/Company
You are the new Marketing ManagerCreate a 4 slide presentation to show:Page 1: Logo & short intro (which sector is it?, where based?
public or private?)
Page 2: Old business AIMS plus new improved onesPage 3: Existing Objectives vs. new improved onesPage 4: Create a new Mission Statement
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Perspective onObjectives...
Making a Profit
“The profit of a business is the income from the sale of it’s products minus the running costs”
An important business objective is to maximise sales, which in turn creates profit
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Profit Making OrganisationsProfit provides: Resources for business expansion
A reward or return on investment from the owners /shareholders in the form of dividends
Making a profit will be one of the main objectives of the business
Sales revenue – cost of sales = gross profitGross Profit – Overheads = Net ProfitsDividends are paid to the shareholders from the net profit
Perspective on Objectives cont..
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Non –Profit making organisationsSome examples...
A non-profit organisation will not have ‘making a profit’ as one of their objectives
It will want to cover its costs and in some cases make a ‘surplus’
Why? Think about a charity or a public corporation (BBC)
Perspective on Objectives cont...
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Growth – Increasing Sales & Market Share
Beating the competition may be a businesses main objective – the survival of the business may depend on it.
A weak Business can be a prime target for a takeover by another business
Survival – Objectives can work against each other Price cutting for growth can cut profits
Perspectives on Objectives cont..
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Activity – Survival of the fittest
A number of businesses are cutting prices in order to increase market share..
1. Find out the lowest price of a sliced loaf of white bread from a supermarket and the price charged by a local corner shop
- What is the difference?- Why is there a difference?- What might happen to the business as a result?
2. Can you think of any other businesses which carry out cost cutting like this? What are those businesses aiming to do?
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Up next...Providing quality (as an objective)Corporate Responsibility ObjectivesCaring for the environment –
sustainability
Internal stakeholders : the workplace and it’s culture