Zishan Ahmed 8120
Unit 1A - Aims and objectives
Most successful businesses have a clear idea on what they want to do and how they want to do it. In business terminology this is called the aims and objectives. Different businesses will have different aims and objectives. The aims of businesses are a list of things that a business wants to achieve. Examples of business aims can include making profit, expanding the business, maximising sales or maybe even just surviving as a business. But why do businesses need to have aims? Many businesses are start-up firms. This means they just recently established themselves as a new business. That business will require aims as it needs to know what the business wants to achieve or the business will never run smoothly. They also need aims because they are most likely to be borrowing money from the bank or maybe from other friends and family, but if the bank cannot be assured that it will get its money back from the business, they will be reluctant to lend any money.
Businesses also need objectives. These are the targets that a business sets it self to check it is going to achieve its aims. Examples of objectives can include selling a certain number of a product within a limit or making a turn over of a certain amount within a set date. These are just two of many examples of SMART Business objectives. The term SMART means that the objectives should be specific, measurable, attainable, realistic, time constraints. Objectives should be specific; this means that there should be no misunderstanding of how to reach the aims. You either achieve the aims `or you don’t. It also needs to be measurable. This means it should be to determine whether or not you have accomplished the objective. Objectives also need to be attainable and realistic. This means that the objectives should be reasonable and should be within reach. The last criterion for a SMART objective is it should have time constraints. This means there should be a deadline within the objective so that it can be measured. It is very important for businesses to have objectives as the objectives will tell the business owners if the business is progressing and reaching its aims.
The business which I set up in class also had aims and objectives. Cantore LTD had many aims. Most of which were appropriate aims for a start up firm. Some of these were:-
- Make a profit
- Provide a competitive service
- Maximising sales
- Keeping customers satisfied
- Establish our business
- Survive as business
Most of the aims we used are used today by many other major businesses for their aims. This shows that these aims are good for the business. But how were we going to meet those aims?
The objective we had to meet our targets was:-
- Advertise to a minimum of 1000 people in the first month
- Turnover of £500 by the end of the month
- Ensure that the business is still running by the end of the month
These objectives are specific, measurable, attainable and time constraining making them fine objectives.
Introduction to eWave
The business I will be studying is eWave computers. Opened in the start of 2004, eWave Computers are a company that offer computing, internet and web related products and services. Located in East London, they aim their products primarily to people in education. The services they offer include manufacturing of custom and readymade computers, website development, design and maintenance. The business is owned by ex-Stepney Green school students who own equal shares of the business. The company is only a new business which reflects on the size of the business. It has one branch located in Brick lane and targets most of its customers from local areas.
Most of the information I will use to evaluate eWave as a business will come from its business plan. Other information can be accessed through their website. Also I can visit the branch and take interviews as it local. The reason behind why I chose to study eWave computers is because; they are very local and can be accessed easily. I also have a general interest in the computer and graphic design industry. The main reason why I chose to study this business is because it is owned by ex students of the school which I am currently studying at.
eWave Aims & Objectives
Similar to most businesses, eWave Computers have many aims. Their business plan suggests that their main aim is to provide low costs computer systems at competitive prices. This aim is well thought as this is their main priority of their business. Their next aim is to build a strong fixed income through other services such as website advertising. This aim will be the key to the success of the business because the fixed income will mean they know how much money will be guaranteed to come in. On page 2 of their business plan it shows us that the next aim is to establish partnerships with other companies. But the most interesting aim for eWave Computers is that they hope to compete with Dell on a national level within the next 8 years according to their business plan. Having these aims means the eWave can see which direction the business is heading towards and is important to them as their aims will help it to be a successful business. I think eWave’s aims are very unrealistic. An example of this can be shown very easily. They will struggle to get anywhere close to Dell’s standards after 8 years because they are aiming their products towards local people whilst Dell are supplying worldwide.
It is vital for eWave to have good objectives as their aims are maybe not so realistic. The objectives will show whether or not they have achieved their targets. So how do eWave Computers expect to reach their aims? Well, according to page 1 of their business plan, their first objective is to make a turnover of £450,000 by December 2004. This objective is very unrealistic as this company is a start-up firm, so they can’t expect such a high turnover. Referring back to the business plan another objective for eWave computers is to have a Net profit of 15% from January to June 2004 and 205 from July to December 2004. This objective is specific and measureable but not attainable. The next objective is to advertise to a minimum of 260,000 people in the first 12 months and finally to establish one workshop a week. All these objectives can be said to be unrealistic but in the past there have been other start-up firms which have surprised many, such as Google. They turned out to be worth millions of pounds when not expected. However I think these objectives are not realistic as they are seen to be too optimistic and might not be attainable.
eWave Computers might want to reconsider their aims and objectives as they are really unrealistic and will be hard to attain however the objectives are SMART and might be successful depending on how the business is run. An example of this would be Amazon which started off years back as really small business but now is worth millions.
eWave Activities - Aims & Objectives
The table below shows the services that eWave Computers offer, what there aims for each activity and how they are going to reach those targets.