Why do businesses set aims and objectives

The aim and objectives help to inspire employees and managers to reach a common goal, therefore help to unify and motivate the workforce. They also encourage managers to think and plan long-term about the future success of the business.

To control and measure performance. They also give managers the basis for measuring the performance of the business as a whole, and evaluate business activities. Business objectives often create a lot of conflict. Different stakeholder groups, who are individuals or groups of individuals both internal and external to the business, have their own objectives. Objectives of different stakeholders e.

Hence, the objectives of business organizations will be shaped by various stakeholders. Both the aim of a business and the strategies it adopts to achieve that aim will often change over time. And because a change of objectives will almost certainly require a change of detailed plan too the strategy , a poor plan or strategy or the lack of one will lead to a failure to reach the overall target for the business organization.

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Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. The role of asset management Case Studies. Operation Case Studies. Success through managing quality, safety customer service and cost Case Studies. Walkers are the UK's biggest crisp manufacturer. The business operates the world's largest snack factory at Bursom Road, Leicester.

Walkers had a humble origin, Mr Health safety in the modern workplace Case Studies. Strategy Case Studies. Vision values and mission in driving strategy Case Studies. The familiar blue and yellow colours of the IKEA logo also the colour of the Swedish flag can be seen on stores in Implementing a new vision at Virgin Trains Case Studies. Virgin Trains is known for running high quality, fast and reliable state-of-the-art trains, capable of speeds of up to miles per hour.

Virgin Trains operates External Environment Case Studies. The most effective business objectives meet the following criteria: S — Specific — objectives are aimed at what the business does, e. A - Agreed by all those concerned in trying to achieve the objective. The main objectives that a business might have are: Survival — a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.

A business may find that some of their objectives conflict with one and other: Growth versus profit: for example, achieving higher sales in the short term e.

Alternative Aims and Objectives Not all businesses seek profit or growth. Some organisations have alternative objectives. Examples of other objectives: Ethical and socially responsible objectives — organisations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.

Changing Objectives A business may change its objectives over time due to the following reasons: A business may achieve an objective and will need to move onto another one e.

The competitive environment might change, with the launch of new products from competitors. Technology might change product designs, so sales and production targets might need to change.

Business Study Notes Aims Objectives. Our subjects Our Subjects. Explore Explore. Contact Contact. The detailed research, communication, and bargaining required, help to reduce costs, maintain quality, and manage the level of risk to the supply chain. Business Case Studies describe the role of procurement to include: reducing costs and improving profitability, reducing waste by managing demand, improving cash flow, improving efficiency, and improving the competitiveness of the business.

Tasks of this caliber truly require the skills of a professional. Seemingly this undertaking is not something generally broadcast as a selling point of a company, however, it is noticed as a win, especially by suppliers and clients, proving that effective purchasing and supply brings many benefits to a.

In order to achieve their vision businesses need to have objectives. For example different businesses have different aims, some businesses look on how to maximize their profit and grow their business in order to match the competitor by selling their products abroad or creating more branches.

Some businesses strive for their survival, as they make very little profit. So these type of businesses focus on break-even which means to cover their total costs with enough cash. In order to achieve this the organization starts making objectives to meet their goals like covering the total cost is their aim.

The main objective of any individual or group going into business is to make profit. Their profit is the difference between the cost of providing the good or service and the actual cost to the consumer. As more companies venture into the same line of business the competition for customers gets intense thus bringing into play the law of supply and demand. Oversupply of a good or service pushes the price consumer has to pay down.

These forces have pushed managers and business strategists into the search for ways to increase the bottom line while reducing cost of good or service delivery. Hire a good business cost over the lifetime of the product or take advantage of financing a business to make its initial price a bit more manageable for the benefit of a large and continuity of the longest and largest in the provision of budget.

And take advantage of the budget in many of the internal policies for the development of work and a lot of successful managers know that the new technology should be to provide the best services to customers, and they must believe the tools they need staff to keep up with the speed of business.

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