The relationship between
mission and objectives
Mrs Reid
Saturday, 29 July 2017
Lesson Objectives:
- Analyse mission statements of some top
firms
-Discuss some objectives businesses may
have
-Explain why entrepreneurs will find it helpful
to set objectives for their businesses
- Explain how business aims can be SMART
Key Term:
A Mission Statement sets out a
business’s overall purpose to direct and
stimulate the entire organisation
STARTER
Guess the company…
• “______’s vision is to be the world's best
quick service restaurant experience. Being
the best means providing outstanding
quality, service, cleanliness, and value, so
that we make every customer in every
restaurant smile."
Guess the company…
• “_____ aims to be the place for health
and beauty customers. We want to
secure market leadership in the UK and
build on our brands’ growing success
internationally”
Guess the company…
• “_____’s mission is to provide a global
trading platform where practically anyone
can trade practically anything."
• "To make the world's information
universally accessible and useful"
…Discussion…
• Remember… the mission statement is a
description of the aims of a business
• When these entrepreneurs started their
businesses what do you think their aims were?
Business Aims
Aims are long term plans from which a
business’s objectives are derived
Business Objectives
•
•
•
•
•
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There are 6 main business aims which firms
could have, these are:
Survival
Profit Maximisation
Growth
Cash flow
Diversification
Social and ethical objectives
SURVIVAL
• Why might a business have ‘survival’ as its
main objective?
- When its just starting out and isn’t
established
- If they have been going through tough
times, and not making many sales,
perhaps due to the recession and high
unemployment
PROFIT MAXIMISATION
• This is one of the most basic aim of the majority of
businesses.
Who would be happy about a business making lots of
profit?
• High profits means better returns for owners and
shareholders
• Customers will be happy the firm can continue to operate
• Employees will have a safer job and could look forward
to a bonus
• OBVIOUSLY profits enable survival
GROWTH
• For some businesses their main aim is to
grow and expand by opening new
branches or extending their range of
products and increasing their market
share.
• OBVIOUSLY growth should ultimately lead
to more profits
CASH FLOW
• Many businesses have an objective to
manage their cash flow as the
consequences of failure could be dire
• How could a business improve its cash
flow position?
• What would happen if a business ran out
of cash?
Diversification
• A firm produces an increased range of
goods and services
• What are the benefits of diversification?
• Are there any risks?
Social and ethical objectives
• Being ‘green’ is often a key aim of
businesses as they look to reduce their
impact on the environment and reduce
global warming.
• What examples can you think of where
businesses have made an obvious effort
to be ‘green’?
• Why do you think they do this?
• What other objectives are there?
Activity Page 9
• Marks and Spencer and its Plan A
Discussion
Why is it important
for business to
have clear
objectives?
To act as a
guide when
firms
choose what
to do in the
future
To act as a
standard
against
which a
business
can judge its
success
Discussion
To provide
targets
which the
business
can work
towards
Why is it important
for business to
have clear
objectives?
To define
what the
business is
and what it
aspires to
be
Business set objectives to help them
meet aims. Objectives should be SMART
S pecific
M easurable
A ttainable
R ealistic
T imed
“To make loads of money really soon” is not smart.
“To make £5,000 net profit in the 1st year” is smart.
Activity: Write down one SMART target for
something you would like to achieve this year…