aims and objectives
Kasha Regisford p3
Aims and objectives
The difference between aims and objectives
Aims: these are the long term intentions that provide a focus for that business or a person to set objectives aims are usually shown as a mission statement and these are the aims that, the business aims to achieve whilst functioning as a business. Aims are set to provide a focus for the organisation.
Objectives are more specific than the objectives. They are targets set to help the business/person to achieve their aims. Objectives for a business are the steps that the business takes to achieve the overall aim.
Difference: Aims are the changes you hope to achieve as a result of your work. Objectives are the activities you undertake and the services you offer to bring these changes about. The difference between the two is that an aim is what you hope to achieve where as an objective is what you will deliver.
All businesses need to set objectives for themselves or for the products or services they are launching
Smart is a useful acronym for setting objectives which should be-
Specific- An objective needs to be specific. It needs to identify exactly where change is to occur, how much change is to occur, what the outcome is, when change is to start and when it is supposed to finish. It cannot be unclear.
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Measurable-you know when you’ve got there or you have done it.
Achievable- it is possible to do them in the time and with the resources available. It needs to be achievable, meaning that increasing sales by 300% in the next two weeks is probably outside possibility.
Realistic- it is possible to do them, they are not based upon fantasy. It needs to be relevant to the work unit's reason for being. An objective must have a meaningful relationship to the companies' objectives.
Time bounded- you set a time limit on them. It needs to be time bound to identify when it starts and how long it is to stay in effect
Purpose of setting aims and objectives
All businesses need to set objectives for themselves or for the products or services they are launching Setting objectives are important. It focuses the company on specific aims over a period of time and can motivate staff to meet the objectives set.
By setting aims and objectives, companies give themselves a sense of purpose and direction. This provides a structure around which to create their plans. With an overall plan in place, a company can set particular targets and monitor its progress towards reaching them. Targets can vary from a sales target and/or a profits target to a zero-accident target.
Some purposes for setting aims and objectives may be described as:
Survival- by setting aims and objectives, businesses ensure that they can archive their goals. A business such as Alton towers has to ensure they keep their standards high in order to survive against other leading theme parks. As Alton towers is in the Tussauds group , their total income is higher making them eligible to make their prices higher and introduce new rides, therefore attracting more customers.
Break even- for company to survive they must at least try to ensure that they are making a profit. If a company does not make a profit or expand their sells, they company would be indebted if their methods of service and of the quality of goods are not efficient.
Growth- in order for a company to grow, they should ensure that they can introduce new measures to secure their growth. One of the ways of introducing new customers would to advertise. The best way to advertise a business, such as McDonalds would be television advertising. This attracts a wider age range. It also encourages customers to go their by offering things you could win by simply advertising that you could win a house or money as McDonalds do, this will attract many customers.
Profit maximisation-the more a business expands and sells the better the income. A business can maximise sells by introducing new customers and keeping their existing customers. To introduce new customers, external customers should monitor and evaluate their services and quality of goods, so that customers are attracted to the company. To keep existing customers they should deliver service and quality of goods at high standards. A company such as Harrods ensures that they keep their customers by carrying out cheap and efficient ways of getting customer feedback using surveys, questionnaires e.t.c. if a company can not carry out a service of high standard or goods of high standards this will result in them leaving they company.
Service provision- internal customers in a business must ensure that they keep their services at high standards. If their service is not of high standard they company will loss any customers they have or may introduce. Service should be keep at a constant level of high standards to satisfy their customers.
Expansion of market share- a company such as Tesco has a large market share. For a business that has less market shares they must try to expand their market by introducing new measures. By introducing new services and a higher quality of goods a company’s market share could expand. Tesco has a large market because they operate on a big scale. A business such as asda has a smaller scale but in order for them to grow they must expand their market.
Relationship with other businesses- for a business to succeed they must have a good relationship with other company’s. If a company has a good relationship with another company they could support each other in terms of suggesting new ideas to help with their business. By suggesting different ideas a company can grow
Why they change:
Aims and objectives may change in different sectors. For example in the public sector they may change their objectives in order to get more customers coming in by for example promoting their company by advertising it. Some businesses change their aims and objectives over time to help them to survive or expand with the market area that they are in. for a public sector their aims and objectives would probably be to invite more customers and secure more money into the business. Unlike the public sector a voluntary business would aim to get more people to invest in the business in order for that business to run.
McDonald’s- mission statement is to be the UK’s best fast service restraunt experience. McDonald’s. McDonalds try to deliver this service though at times McDonalds try to achieve this aim, their main competitors include other fast food restraunts such as; burger king, kfc, and subway.
These to businesses run on a different scales and ownership. McDonald’s is run on a multi-international scale and is in the tertiary sector. Whereas loros is run on a regional scale and depends on the community and organisations to keeps it running.