Main aims and objectives
In business an aim is your target, and your objective is how to aim will be achieved. For example when McDonald’s first opened it 1955 its aim was to survive its first year, sell as many meals as possible and make a profit. Now in the 21st century, McDonald’s is a worldwide business. Its aims are to help charities, be environmentally friendly, expand and beat worldwide competition.
Adrian is a sole trader so his aims were to survive in the first few weeks of opening. To do this he obviously needed customers, so he designed leaflets and distributed them in the local area. He also decided to advertise in the local paper to attract customers. Advertising was a big aim for Adrian, as he needed to make as much profit as possible. All his profit became his own personal money. He needed to adapt to a style of tuition, which would suit his customers. He needed to do this because he had never taught driving lessons before. He wanted to provide a quality service, so satisfied customers could spread the business by word of mouth.
Why is it important for Gunner Pass to set aims and objectives
Adrian main aim was to keep his business up and running for his first few months of opening. To this he needed to advertise his business, he decided to put on special offers to attract customers. This is important to keep the money coming in, as he needs to pay tax on his vehicle and pay for any maintenance. Adrian’s other main aim was to get as many customers booked for a lesson as possible. He advertised in the form of leaflets and in the newspaper. The more customers he gets then the more profit he will get. Adrian needs keeps advertising as much as he can. He puts money aside to spend on his advertising work. For example if he puts £15 into advertising a week then he would need a £45 back in profit, to make it worthwhile. If he achieves less than £45 profits back a month then he needs to rethink his approach for advertising his business.
Show how successful Gunner Pass is in meeting theses aims and objectives
One of Adrian’s aims was to make as much profit as possible. He needed to keep track of his finances to see if his aims as being met. If his aims are being met then he may decide to increase his advertising or type of advertising. Adrian’s business has survived for a successful 9 months so he his achieving his aims of making surviving as possible. He is also achieving his aim of advertising as much as he can. As regular adverts have been appearing in the local paper. When his adverts have been in the paper the number of customers has increased by 30%. Every time he drives his car he is advertising as his car has an advert on it with the businesses number.
Explain why the type of ownership is suited to Gunner Pass
Gunner Pass is a sole trader. Adrian chose to become a sole trader as he had never run a business before. The ownership suits Adrian, as he wanted the luxury of keeping all his profit. Keeping and spending his profit was the main reason for starting his business. He also enjoys what he does in his job, as he enjoys training his customers to drive. Adrian has a family to support, so making as much profit was important, but also risky as he doesn’t have any experience. In the future if Gunner Pass is still running well and is successful, Adrian may think to expand and become a plc (public limited company). Becoming a plc will mean much more paper work. Adrian will have to be working more hours in order to maintain the business. Becoming a plc is a big step for any business. Adrian will need to obtain a Memorandum of Association. This shows the company name, the address where the business is controlled and the type of activity the business runs. Either (primary, secondary, tertiary). If he becomes a plc he will have to hold a regular Annual General Meeting (AGM). The AGM is a meeting where all people involved in the business come together and discuss the business. The Directors tell the shareholders what their aims are for the next year. The shareholders will either agree or disagree. If the shareholders feel you are doing a bad job then they can sack you. This means the person who started and brought the business up could no longer be part of the business. Adrian has no future plans to become a plc. If he does he will need to expand the business as a whole. Eg. More cars or more employees.
Cummins UK
Main activities of Cummins
Cummins Inc, a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories. With 23,700 employees worldwide, Cummins reported sales of $5.9 billion in 2002. Cummins has many worldwide locations across all the continents. This business is in the secondary sector as it manufactures goods and sells them on to tertiary businesses. I am researching the UK sector of Cummins. The UK sector is a private limited company. (Ltd).
Main features of ownership
Cummins is a private limited company (Ltd). Private limited companies are generally smaller than public limited companies. A limited company is a business, which is owned by shareholders and run by directors. Shareholders are people who have invested money in the company. In return for his they receive profits in the form of dividends. Directors control the management of the business. The directors usually own shares in the business. Shareholders will appoint directors to run the business. Below are the Cummins board of Directors these are the main people who run and manage the business.
Main aims and objectives
An aim is what a business sets out to achieve. An objective is a target which helps a business achieve its aim. Many objectives relate to sales and financial performance because profit and competitive position are important business aims, for example the business will increase sales by 30% in the coming year. Cummins has an environmental mission. A business may decide to have an environmental mission to boost its reputation, as the public and environmental groups will hopefully support the ideas, and the business will become more known. Cummins is a worldwide business that has high ambitions. Cummins has a mission statement, a mission statement is a formal statement setting out the aims of the business. Cummins’ Mission Statement and Environmental Mission are below.
Cummins Mission Statement
- Motivating people to act like owners working together.
- Exceeding customer expectations by always being first to market with the best products.
- Partnering with our customers to make sure that they succeed.
- Demanding that everything we do leads to a cleaner, healthier, safer environment.
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Creating wealth for all stakeholders.
Cummins Environmental Mission
Cummins provide the technologies that power the world and support its economies. Cummins conduct their business with the consent of society and strive to improve the quality of life for all people. Cummins demand that everything they do leads to a cleaner, healthier, safer environment. In fulfilling this mission, they will:
- Develop superior products that continually meet or exceed emissions and noise regulations while improving fuel economy.
- Exercise global citizenship
- Make the environment part of their business everywhere where they operate or distribute their products.
- Evaluate and report their progress against stated goals.
Why is it important for Cummins to set aims and objectives
Business aims and objectives are important to set, the business needs to know if the aims and objectives have been achieved and if the business is beating its competition. Cummins may decide to set an aim to improve its customer service. The aim will be monitored and checked to see if it is achieved. If Cummins are succeeding then the regular customers will keep returning so they know their customer service is a high quality. With the regular customers who keep buying and the high standards the profits will gradually increase. It is also important as the company is always looking forward and to its future. The future is always in a big businesses plan, as they need to keep their reputation up and keep bringing the latest technology out. To do this the employees and engineers will have to be creating new plans frequently to be on target to release the latest models.
Show how successful Cummins is in meeting these aims and objectives
Cummins needs to see if its aims and objectives are being met or not. Cummins can check this through profit or sales. If sales are on the increase then Cummins’ target of maximising sales has been achieved. But if Cummins fails that aim then they may be forced to release people from their jobs. Cummins is planning to shed 95 jobs at its heavy vehicle diesel engines factory in Darlington. This shows that Cummins has gone wrong in the past and has needed to release its employees. If Cummins has succeeded their aim they may expand and open more branches. Cummins Engine of the US is planning a £17m factory near Ramsgate in Kent to make power-generating sets, providing 300 jobs. This shows that Cummins is looking towards its future as it is providing new jobs for a local community. Opening a new factory will also provide more profit for Cummins. All these things will help to expand the Cummins brand worldwide.
Explain why the type of ownership is suited to Cummins
Cummins is a worldwide business with a good reputation. The ownership of Cummins is very important in order to keep the business running. As Cummins is a Ltd, its ownership must be high on its agenda. As the ownership can determine how successful a business is.
Taken from www.ukbusinesspark.co.uk/cumminsa.htm
Taken from www.ukbusinesspark.co.uk/cumminsa.htm