- Provide a charitable or voluntary service: -Businesses support charities by sponsoring events or by giving donations. Not many businesses could claim that this was a main aim, as they would want to make profit first. Charitable giving takes place because it gives the business publicity and a caring profile in the eyes of the public. It forms part of what is known as corporate social responsibility.
- Help sustain the environment: -Businesses like to be seen to be helping to save the environment. If they are thought to be socially responsible, consumers are more likely to think better of them and therefore more likely to buy their products. Saving on the use of resources such as energy use, can also lead to the saving on cost which would directly help to boost profits.
Businesses will often set out its main aims in a 'Mission Statement'. It may also include a view of how it sees itself in what is known as the business 'vision'.
Aims and Objectives of Errol Anderson
Errol has many aims to help him plan and set targets for what he wants to achieve. Errol’s main priority when he took over the business was to simply survive and manage to keep all existing customers and attract more from other local businesses. He was also anxious to maintain the quality of the service to satisfy his customers. As Errol's business has now become established and he has gained confidence, he is trying to expand which is one of his aims. Errol also hopes to employ a full-time mechanic to cope with the increased business, so another aim is to make enough profit to be able to pay the wages of the employee and for the expansion of the business. In order to achieve his targets his objectives are be competitive or beat competitors, maximise sales, provide quality products and if possible he may want to help charities and the environment in some way.
Aim and Objectives of Tesco
Like Errol 'Tesco' also has a number of aims which they plan to achieve. Aims:
- They aim to make Tesco a satisfying place to work by giving their staff the opportunity to be themselves, actively encouraging their health and well being and support their work/life balance needs.
- They aim to employ people who reflect the diverse nature of society and one of their company values is to 'trust and respect each other'.
- Tesco is committed to playing a positive role in the community by helping charities.
- Tesco believes it should contribute to the capabilities of tomorrow's workforce while they are still at school.
- Tesco, Britain's largest food retailer is committed to protecting the environment, using its commercial strength to put principles in practice.
- Tesco is committed to ensuring high standards in our entire fresh own brand meat, poultry, eggs and fish.
- Tesco's target is to expand their sale of organic produce to 1 billion pounds over the next five years.
Tesco's mission statement is, 'To create value for our customers, to earn their lifetime loyalty'. Tesco Core Purpose is all about customers and this statement is the centre of all they do.
The main similarities between the aims and objectives of the PLC and Sole Trader are that they are both:
- Managing to maintain the quality of the service to satisfy its customers
- Managing to keep all existing customers and gain more.
- Making profit in some way.
- Aiming to expand. Tesco's target is to expand their sale of organic products and Errol’s target is to expand the business itself.
- Aiming to make more profit to help Errol to expand and Tesco to the pay shareholders and rent of land etc.
The main differences between the aims and objectives of the PLC and Sole Trader are:
- Tesco helps or works for charities, which have helped it, gain customers and remain popular with a good reputation.
- Tesco does a few things for the environment e.g. recycle paper and bottles etc.
- Tesco already employs 185,000 staff in the UK and 250,000 staff worldwide whereas Errol has not employed any.
- Tesco is making profit faster as of its high quality products and services it provides e.g. loans, insurance etc.
- Tesco is more popular at the moment than Errol Anderson Motors.
- Tesco has more competition, as it is a bigger organisation, which is the reason why it has competitive prices, whereas Errol on the hand cannot cut down on the price of products easily as it is a small business and does not earn much profit compared to Tesco.
Changes that could be made to the aims and objectives of the Sole Trader to enable it to be more effective are that it could:
- Help or work for a charity in some way to gain publicity and customers.
- Do something for the environment again to gain publicity and customers, as they know he is doing something good. It will give his business a good reputation.
- Expand a little if possible to gain more customers and to be able to provide more services and sell more.
- Employ a full time mechanic to take the stress off Errol’s back.
- It could sell quality products if possible like a car stereo etc or improve the quality of the service that may gain customers.
- Ain to have a newsagent so he can branch out into another industry.
Changes that could be made to the aims and objectives of the PLC to enable it to be more effective are that it could:
- It could increase the amount of organic products sold, as they are grown naturally and do not contain chemical which some people may take to mind, as they want to know what they are eating.
- To make a lot more profit so he can take on more workers, do more adverts in newspapers and TV and expand so they can have other/more branches in and outside the UK.
- Aim to expand more so it could offer a international or national internet service, but in order to do this, they have to open a lot more stores nationally or internationally. This can only be achieved if Tesco gain/make more profit.
Aim to offer more services like holidays so it can become a more effective business, keep its customers, and gain others.
