Unit 1: The Business environment
P3 and P4
Aims and objectives of a business are what the company hope to achieve. Aims are the long term plan and the 'bigger picture' for the company and objectives are the smaller goals in which they need to achieve to reach that desired future.
The aims and objectives of any organisation depend on what type of business they are. For example the aims of a smaller non-profit organisation such as a charity will be very different to those of a large global company in the private sector.
The reason that a company has aims and objectives is so that they have goals to achieve because it is important that all businesses have a plan to follow. The purpose of a mission statement is to outline a businesses main aims and clearly identify the purpose of the organisation to all of it's stakeholders.
All of the above methods (missions, aims and objectives) are all forms of strategic planning. The strategic planning process of an organisation is the process through which all the major plans for the company are created. The aims of a company are strategic because they are there as steps to be the best that they can be and are ways in which the company can achieve what they set out to do.
Below are examples of two very different company's and an explanation of how they use strategic planning, what there organisational structures consist of and what functional areas each of them use to implement their overall Plans.
Oxfam's mission statement is 'to eradicate poverty throughout the world'. Their aim is to 'create lasting solutions to the injustice of poverty'. They hope to do this through achieving many different objectives. Their main objectives are the following:
To provide as many people as possible with a livelihood
To provide the worlds population with basic services
To ensure that people are safe from harm
To guarantee that those who live in poverty are heard
To help make changes so that...