BTEC L2 Business Enterprise/ICTUnit 2 – Business OrganisationsP2: Describe the purpose for a business in

setting aims and objectives

•To understand why a business sets aims and objectives.•To be able to describe the purpose of an organisation setting Aims and Objectives

Purposes of setting aims and objectives

Overall Strategy

Organisations and Departments

Positioning

Marketing

Brand image

Relationships

Overall Strategy

• Having aims and objectives gives an organisation a strategy.

• SMART targets they can be analysed and it is easier to see what if anything needs to be done to achieve them.

• SMART Targets

• Specific: The business wants to be carbon neutral – this is a definite aim.

• Measurable: It wants to be carbon neutral. This means there’s a number that can be measured.

• Achievable: This means can it be done; Carbon neutrality is difficult for a large organisation but achievable with planning and commitment.

• Realistic: How likely is it to take place? Is there the technology to help? Is there money to do this project? Are there the people to make it happen?

• Time bound: There is a time frame stated (2020)

Organisations and Departments

• An organisations departments need to be clear about the overall strategy of the company.

• They also need to be clear about their own objectives and how these fit in and will help with reaching the long-term goals.

• EG Finance dept control money & minimize spending

• IT want latest equipment

• May have conflict

Positioning

• Where organisation is in the market

• Supermarkets Tesco’s No1, Sainsbury’s No2 etc

• If a company has a competitor that has a greater market share it needs to consider what it’s competitor is doing right and what it is doing wrong and do something about it to change this.

• EG ?

• new product range, lower prices

Marketing

Marketing will help the organisation show itself as a distinctive brand from its rivals.

Sony and Beko are organisations that make TVs’

Use same components

Similar specification. What separates them?

How much of it is image?

How much is the product different?

Brand image

• In modern organisations brand image is important.

• Think of the difference between Aldi and Waitrose.

• Are the organisations that different? How are they similar?

• Some organisations pride themselves on being Premium

• my favourite here is Tropicana juice,

• what is it that makes their product 2 to 3 times more expensive than their competitors?

• Is it actually value for money?

Relationships

It might be necessary for an organisation to form close relationships with suppliers or customers

CBI say SME’s need to do this (2011)

how might an organisation do this and why?

They will need to build up trust

Samsung + Apple did this….

Success V failure

What will happen if an organisation reaches its goals?

Do they set more?

Do they relax?

What will happen if they do not set more goals?