P1 – Define Aims and Objectives

Introduction:

Businesses set aims and objectives which they would like to achieve. For this task I will define what is meant by the aims and objectives of businesses in different sectors.

Mission Statement:

• Many organisations have a mission statement. A mission statement is…

• The wording may be different depending on the sector. For example in the private sector…

• In the public sector…

• In the not-for-profit sector…

(Use examples of mission statements from the three organisations you are using)

Aims and Objectives:

• Aims are… (definition, time to achieve, examples are profit maximisation, break-even, survival, service provision, sales, growth, market share, relationships with other businesses)

• Objectives are…(definition, time to achieve, how do they relate to aims)

• Objectives have to be SMART because… This means…(explain each element)

Private Sector Aims and Objectives:

• The organisation that I will write about is…(identify main products/services provided)

• The aims of the organisation are…

• To achieve these aims, the organisation can set objectives such as…

Public Sector Aims and Objectives:

• The organisation that I will write about is…(identify main products/services provided)

• The aims of the organisation are…

• To achieve these aims, the organisation can set objectives such as…

Not-for-Profit Sector Aims and Objectives:

• The organisation that I will write about is…(identify main products/services provided)

• The aims of the organisation are…

• To achieve these aims, the organisation can set objectives such as…

P2 – Describe the purpose for the business in setting aims and objectives

Introduction:

Using the businesses I have identified earlier I will now describe why they set aims and objectives.

Private Sector:

• It is beneficial for (PRIVATE SECTOR COMPANY) to set aims because… (e.g. provide focus, direction, goal)

• It is beneficial for (PRIVATE SECTOR COMPANY) to set SMART objectives because… (e.g. track/measure progress towards aim)

• If (PRIVATE SECTOR COMPANY) fails to meet its aims and objectives it can take corrective actions such as:

o Reduce costs

o Reduce prices

o Diversify

o Cut dividends

o Finding better ways of meeting customer needs

(You need to explain those actions in relation to your chosen business and its aims. For example a private business such as Tesco may have an aim to maximise profits. If it is failing to achieve this aim then Tesco can reduce prices to increase sales)

• Sometimes there are external reasons why (PRIVATE SECTOR COMPANY) may not meet their aims or objectives. These include:

o Political, Economic, Social, Technological (briefly explain in relation to your chosen business)

Public Sector:

• It is beneficial for (PUBLIC SECTOR COMPANY) to set aims because… (e.g. provide focus, direction, goal)

• It is beneficial for (PUBLIC SECTOR COMPANY) to set SMART objectives because… (e.g. track/measure progress towards aim)

• If (PUBLIC SECTOR COMPANY) fails to meet its aims and objectives it can take corrective actions such as:

o Reduce costs

o Reduce prices

o Diversify

o Cut dividends

o Finding better ways of meeting customer needs

(You need to explain those actions in relation to your chosen business and its aims)

• Sometimes there are external reasons why (PUBLIC SECTOR COMPANY) may not meet their aims or objectives. These include:

o Political, Economic, Social, Technological (briefly explain in relation to your chosen business)

Not-for-Profit Sector:

• It is beneficial for (NON PROFIT SECTOR COMPANY) to set aims because… (e.g. provide focus, direction, goal)

• It is beneficial for (NON PROFIT SECTOR COMPANY) to set SMART objectives because… (e.g. track/measure progress towards aim)

• If (NON PROFIT SECTOR COMPANY) fails to meet its aims and objectives it can take corrective actions such as:

o Reduce costs

o Reduce prices

o Diversify

o Cut dividends

o Finding better ways of meeting customer needs

(You need to explain those actions in relation to your chosen business and its aims)

• Sometimes there are external reasons why (NON PROFIT SECTOR COMPANY) may not meet their aims or objectives. These include:

o Political, Economic, Social, Technological (briefly explain in relation to your chosen business)