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Business Objectives (PowerPoint download)

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					Business Objectives
   BUSINESS OBJECTIVES
• It is important for a business to
   – have well defined objectives (goals)
   – be clear about what it wants to achieve

• Business objectives will be

  – determined by its
    stakeholders
  – used to determine success
MISSION STATEMENTS

–   immediate and long term objectives
–   express objectives in ‘qualitative’ terms
–   often focus on the needs of customers
–   identifying specific service to be provided
–   issued to customers, employees
–   displayed in reception areas
Business Objectives
     Who’s mission statement??
•   ?????? mission is to organise the world's information and make it
    universally accessible and useful.

•   To refresh the world…
•   To inspire moments of inspiration and happiness…
•   To create value and make a difference… ???? ????

•   ?????? vision is to be the world's best quick service restaurant
    experience. Being the best means providing outstanding quality,
    service, cleanliness and value, so that we make every customer in
    every restaurant smile.

•   To experience the joy of advancing and applying technology for the
    benefit of the public. ????

•   ???? mission is to provide a global trading platform where
    practically anyone can trade practically anything
MAXIMISING PROFIT

• in the long run all businesses must make profit to
  survive

• firms may sacrifice short term profit
  maximisation for long term profits

• small firms may not wish to maximising profit if it
  means
   – increasing workforce/longer hours
   – VAT threshold
               GROWTH
• Growth may mean
  –   survival
  –   domination of market
  –   economies of scale
  –   diversification
  –   reduced business risk
• Lack of growth may mean
  – loss of competitiveness
  – decline in demand
  – closure
              SURVIVAL
• There are 3 main times when a business may
  consider survival to be one of its main
  objectives:
   – early stages of trading
     •   lack of experience
     •   lack of resources
     •   competition
     •   unforeseen problems
     •   limited recognition
  – during a recession
  – threat of takeover
         REPUTATION
• Image and
  social/corporate
  responsibility has
  become increasingly
  important in
  business because of
  – legislation which
    favours consumers
  – changes in social
    attitudes
  – competitive pressure
MAXIMISING SALES
• sales revenue maximisation is NOT the
  same as profit maximisation

• The theory implies that managers will seek
  to maximise the number of sales. The
  reason for this is that managers may be
  judged by the level of sales.

• In addition, manager's salaries, power and
  prestige may depend directly on sales
  performance.
    SOCIAL RESPONSIBILITY
• Behaving in a manner that takes all
  stakeholders into consideration:

•   Staff welfare
•   Prompt payment of suppliers
•   Ethical trading
•   Consideration of local
    community

• Marks and Spencer Plan A
 Managerial Objectives
• ownership and control are separate
• management able to take control
• management aims may be
  –   maximise personal salary
  –   maximise their departmental budgets
  –   improve their status and recognition
  –   maximise no of employees in their charge
  –   maximise their leisure time
  –   delegate as much work as possible
  –   maximise fringe benefits
 Provision of a Service
May be main objective of

  – public sector body
  – voluntary sector organisation
    What determines business
          objectives?
•   size and status
•   age of business
•   sector - public, private or voluntary
•   whether long-term or short-term
    objectives
•   external pressures
•   internal pressures
•   risk
•   culture

				
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