Objectives:
The objective is more specific than aims and gives the business a clearly defined target. Objectives are short-term targets set to measure progress towards a goal. The objectives for a business could be to reduce cost, increase sales, open two stores next year, home delivery etc.
- Reduce the cost by 25% in 2009. This objective can help achieve the aims of survival.
- To open two more stores by the end of December 2009 to make the business bigger. This can help the growth of the business.
- To increase sales by 10% from 2009 to 2010.This objective can help to achieve the aim of growth.
It is important to set objectives because it focuses the company on specific aims for a long time. Sometimes objectives are not clear and not easy to understand, however this problem can be overcome by setting SMART objectives. If employees don’t understand the objectives then they cannot meet the aims of that business. SMART stands for specific, measurable, achievable, realistic and time-related.
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S- Specific: Objectives should be clear and easy to understand so they are achievable.
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M- Measurable: A business should be able to measure if they are meeting the objectives or not.
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A- Achievable: This means that the objectives that the business sets are achievable and possible.
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R- Realistic: This means that the objectives are possible for the business to achieve them.
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T- Time-related: Business might set a specific time period for when they want the objectives to be met.
Smart Objectives Examples:
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S – For example I will save £30 a week.
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M –This means achievements can be checked. Banking your savings means your bank statements will record and measure your achievement.
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A – This means you can attain your target if you stretch yourself a little – so saving £30 a week may be achievable without having to make too many sacrifices.
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R – This means the target is sensible so that you stand a chance of achieving it. You could not save £30 a week if you did not have a job that paid at least that amount.
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T – Businesses try to achieve objectives in a specified time period. For example they might want to achieve something by the end of 2009.
Importance of setting aims and objectives:
Aims and objectives are very important for businesses, to make sure that they are moving forward. They set the SMART objectives so they can achieve the aim and that they can also achieve the goal they want. The business might have a purpose and they can only achieve it by setting aims and objectives. Keeping the staff motivated is good for businesses, because then if the workers are motivated they will provide a good level of customer service and they do their job better. If a business does not have aims or objectives then that business will have lots of problems in future e.g. the business may become bankrupt, or the business may not even reach the break- even point. This means that the business would not even cover its costs and they will end up being closed.
SUBWAY
Introduction:
Fred Delauca founded the Subway chain in Connecticut, USA, in 1965. The company has since grown into a multi-billion pound business. It has 30,134 stores worldwide in 87 countries and 1365 stores in the UK and Ireland.
In 2003, the Subway chain beat its all time record for the number of franchises sold in a single year. More than 70% of new SUBWAY franchises are sold to existing SUBWAY owners.
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Subway aims and objectives:
Subway knows clearly what they want to do and how they want to do it. In business this means that Subway set clear aims and objectives which are set to achieve the aims. Subways aim is to expand their growth of business in the UK and Irish stores to over 2010 branches; this is an aim of growth for the business. They also want to maximize the profit. Subways objectives are to achieve the aims of growth and profit maximisation. Subway will need to set objectives such as: Subway must open three new stores every week by 2010, this will help to achieve the aim of growth for the business. Subway needs to open more branches to give extra services to people and grow their business. Subway can increase their sales and achieve growth by selling more franchises.
The purpose of settings aims and objectives:
The purpose of Subway setting aims and objectives is to expand and open more Subways. Another reason for Subway is to make all customers aware of its products and to convince them to try it. They do this by providing good value and great fresh food to satisfy the customers. The aims and objectives of Subway also mean the business has a clear direction.
Why Subway set aims and objectives:
Subway set aim and objective because without setting aims and objectives the business will not be able to achieve its goal e.g. by not achieving the objectives businesses will not be able to provide the service that customers want. Subway wants to bring customers into the stores and keep them coming back and this can only happen if they provide a good customer service. All the employees in Subway know what is expected from the business by setting aims and smart objectives.
Kassam Newsagent:
Sole trader:
My sole trader organisation is “Kassam Newsagent”.
A sole trader is owned by one person. Examples of small businesses include local shops, takeaway, chip shop etc. I have chosen to research Kassam Newsagent shop as a sole trader. It is a local newsagent shop in Cheetham Hill, in Manchester. This shop is family owned and run by family and relatives.
Aims:
Kassam Newsagent aims are to expand by opening more shops or buying out their competitors. The owner’s aim is to grow because he wants to sell more goods or services.
Objectives:
The objectives are set to achieve the aim. The objective of Kassam Newsagent is to offer reasonable prices to their customers for new products and services. This will increase the profit because more customers will come and this can help to achieve the aim.
The following are the SMART objectives that Kassam newsagent might set to achieve their aims:
- Employee more staff by the end of February 2010.
- Increasing selling prices by end of January 2010.
- Try to make profit from 2009 to 2010.
Conclusion:
The aims and objectives are different for a sole trader business, than for from Subway because a sole trader is a small business and Subway is large business. The aims of Subway are to be recognised as one of the world best fast food restaurants and Kassam Newsagent only wants to be recognised as the best local shop around that area. The sole trader business only has to make their reputation in a small area and they also have limited competition. Where as Subway has many competitors on a global basis. Therefore the difference between Kassam Newsagents and Subway’s aims and objectives is very large. Subway has the power to attract many customers in different ways, because Subway has money to spend on their business to entice more customers and profit. Where as the sole trader might need to borrow or use personal saving to spend on the business.