Aims and Objectives

Lesson Objective: To understand the difference between aims and objectives. John is presently 17 and his aim is to be like his elder brother Alan and to be driving a sports car in the next few years!! His dad has promised to give him driving lessons. In order to achieve this aim he has set himself certain objectives: 1. 2. 3. To have passed his theory test by next March. To have passed his practical driving test by next June. To save 10 each week from his part-time job and from his pocket money towards the deposit for the car.

His aim is what he sets out to do. Aims generally cannot be easily measured because there is nothing specific to check if they have been met. All we have for John is that he hopes to be driving a sports car in the next few years. The objectives he has set himself are targets towards achieving that aim. He can measure his objectives because they involve specific dates or figures etc. They are quantitative objectives because they include quantities (numbers). If by next March he has passed his theory test he will have met his first objective. How will he know if he has met objectives 2 and 3? Businesses generally have many aims, which they then break down into objectives, which can be measured. For example: A business aim could be to maximise profits. In order to do this it must increase its sales and reduce its costs. These are not yet objectives they cant be measured. We need to include dates and/or figures in them. It would be better to show them like this: Aim To maximise profits Objectives To increase the sales of last year by 5% by December. To reduce the wage bill by 5000 over the next two years.

Task 1 Write a heading Aims and Objectives. Underneath it, explain what your aim is with regard to the course you are presently studying. Set yourself three objectives to achieve this aim. Qualitative Aims The aims we looked at earlier were all quantitative. This means they are easily converted into objectives and measured. Some aims, however, are qualitative. We still need to be able to measure them but we couldnt do so just by looking at figures on a certain date. A qualitative aim could be to offer a better quality of product than a competitor. Whether or not we achieve this depends upon the customers views. To measure this we would have to ask them in someway, perhaps using a questionnaire. There may be other ways we can judge a qualitative aim, for example, if customers arent buying a particular product it may indicate it is of poor quality.

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Task 2 Write a side heading Qualitative Aims. Copy the following qualitative aims of a business and suggest ways we might be able to judge if they have been met: a. b. c. To have a highly skilled workforce. To help charities. To be environmental friendly.

Task 3 Someone is muddling up their aims and objectives, can you help? Rewrite the table on the next page, sorting out the aims from the objectives of a business. Aims Provide more services than the previous year. Survive as a business. Reduce costs by 5% based on last year. Make a profit. Recap Questions a. b. c. d. Explain the difference between an aim and an objective. Give one example of an aim. Give one example of an objective. Explain the difference between quantitative and qualitative aims and objectives. Objectives Provide a competitive service. Be environmental friendly. Expand the premises by next month. Launch a new product in June.

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Size and Location Factors

Lesson Objective: To understand how size and location influence businesses. The aims and objectives of a business may be dependent upon its size. Consider these two businesses. Greens Newsagent Mr Green has three young children in local schools and wishes them to finish their schooling there. He bought this Newsagents last year. He works on his own, selling sweets and tobacco, as well as newspapers, to people in his local town of Bridge End, West Midlands. His major aim is to survive in his business this year but he also aims to renovate the front of the building and start Greens Newsagent renting out videos.

ALDI ALDI is an international retailer, specializing in an assortment of private label, high quality products, at the lowest possible prices. Its unique way of operating makes it virtually impossible for competitors to match their combination of price and quality. It relies on importing quality products in bulk, at competitive prices, and quickly distributing them to its stores around the U.K. It aims to keep its prices lower than its competition, increase its UK sales and open more new shops in Europe. Task 4 a. b. For each business above, write out the three aims. For each of the aims, make up a suitable, measurable objective.

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Location Factors The location of a business is influenced by many factors: 1. Personal reasons of the owner The desire to remain close to home for family reasons. 2. Customers Whether or not the business needs to be close to its customers. 3. Transport links Do we need to be close to motorways, train stations, airports etc? 4. Raw materials Some businesses require specific raw materials such as clay or steel. They may need to set up closer to where these can be easily obtained. 5. Skilled labour Some businesses require specialist skills, which can only be found in certain areas of the country. 6. History and tradition Some areas are well known for particular products and services and would naturally attract customers. 7. Costs The cost of wages is higher in some parts of the country and this may influence location. Other costs, such as costs of premises also influence the decision on location. 8. Financial help Businesses setting up in certain areas of the country benefit because grants and assistance is available (often because it is an area of high unemployment). Task 5 Explain which of the above location factors would be most important to Mr Green, and to Aldi outlined on the previous page. Task 6 Most businesses will be influenced by several location factors. Read the information in the box and consider the two businesses below it. Identify which location factors have influenced where each business was set up, and which of these factors was most important.

Gretna Green is very close to the A74M motorway. Aberystwyth is several hours away from the nearest motorway. The government provides financial assistance to areas in the greatest need such as West Wales and all of Northern Ireland.

Information

Davids Caf In Aberystwyth David is married with no children. His wife runs a local caravan club in Aberystwyth. David bought his caf a few years ago, taking advantage of government assistance. Aberystwth is a traditional seaside town. The caf is on the High Street where most visitors go.

Andrews Kilt Shop In Gretna Green Gretna Green is well known in Scotland for young couples eloping from England to go to and get married. Although Andrew rents kilts out to such couples, the majority of his business comes from orders over the internet he offers delivery of his kilts within two weeks to anywhere in the U.K. Kilt making is traditionally a Scottish trade and, in Gretna Green, Andrew is able to employ the best kilt makers anywhere in the U.K.

Task 7 Recap Questions Which is the aim and which is the objective explain why: a. b. I intend to save 2000 in the next two years. I intend to own my own business in the future.

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Task 8 Which is a qualitative aim and which is a quantitative aim explain why: a. b. My business will be cheaper than the competition. My business will be better than the competition.

Task 9 Which of the following are location factors: a. b. c. d. e. I chose Northern Ireland because government grants were available. I chose to sell DVDs because there is a good demand for them. I chose Birmingham because it has an airport and good motorway links. I chose to advertise in newspapers because it is cheaper than using the T.V. I chose the jewellery quarter in Birmingham because traditionally people go there to buy jewellery. * * * Now is a good time to look at Objectives 1 and 2 of your coursework. * * *

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The Need for Functional Areas

Lesson Objective: To understand the need for functional areas in an organisation. A sole trader, or a person running any small business, often does all the jobs himself. He will have to think about buying in stock, paying his suppliers and other bills, advertising his goods or services and chasing up money from customers. He will probably do all the typing and filing himself too! As the business gets bigger he will take on more employees to do some of these jobs for him. A big organisation could have hundreds or thousands of different employees all doing different jobs. These employees will work in different functional areas according to the nature of the job they perform. Task 1 Consider your school/college has the following employees: Cooks A German teacher Dinner ladies Head of Music Typists Telephonists Kitchen Staff A receptionist A French teacher Secretaries A drum teacher Head of languages

Put a heading Functional areas in my School. Copy the table below and complete it to show who works in which functional area:
The Modern Languages Department The Music Department The Office The Canteen

By creating these functional areas your school can function more effectively. People within the school know exactly where to go to find something out, e.g. the cost of a plate of chips! Information is thus transferred more quickly. People outside your school can also contact specific functional areas directly, saving them and the school a lot of time and effort. This ensures customers and suppliers are kept happy by being dealt with quickly and efficiently. It also ensures functional areas are not constantly bombarded with information which isnt relevant to them. Thus communications both within the school and from outside are dealt with more quickly. Each functional area is made up of people with specific skills in that area so the skills and expertise of staff is clearly targeted to the tasks in hand. In summary, functional areas are necessary to ensure the whole organisation functions effectively. Task 2 Summarise the advantages to an organisation of having functional areas.

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The Main Functional Areas in a Typical Organisation

Lesson Objective: To understand the main functional areas in an organisation. A typical business would have the following functional areas or departments: Administration and IT Support This area would deal with all office work, general typing, filing, dealing with the mail etc. It would also deal with general queries from customers or suppliers passing them on to other departments when necessary. It would also look after the buildings cleaning and maintenance, health & safety and security matters. IT support would be involved in supporting software applications. Production or Operations Management This area would be where the business actually makes the product it is selling, or the service it is providing. Here a variety of resources are managed, including people and equipment. It would also need to control any stocks of raw materials it is using and request more when necessary. Marketing, Sales and Research and Development Here the staff will conduct market research to find out what customers want and will be planning the best way to advertise the products and the company. They will consider where and how to advertise and the best ways to get customers interested in the product. They will also monitor sales. Customer Services The staff here aim to keep the customers happy. They may give advice on the product range, answer customers questions and deal with any problems or complaints the customer may have. Finance This area deals with anything to do with money. It ensures bills are paid and chases customers as necessary. It sorts out the wages, helps calculate the costs of new products and keeps an eye on the money being spent in other departments. It also looks after tax and VAT demands. Human Resources This area recruits new employees and monitors existing ones dealing with everything from promotions to dismissals. It looks after the working conditions of staff, working with employee organisations and unions. It also ensures employee and health and safety regulations are met.

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Worksheet
List the jobs of the following people and state which functional area they work in.

Michael works as a quality controller on the production line. He checks the product at each stage of the production process, ensuring there are no faults. He checks both the manually produced products and those done by automation. He also orders new stock from suppliers, as necessary, using on-line ordering.

Angela starts the day by opening the mail, and email, and distributing it to other departments as necessary. She acts as a receptionist and deals with visitors. She also answers telephone calls and does any general wordprocessing or filing that is needed. She passes any problems to do with the maintenance of the buildings, or to do with software applications, to her supervisor. At the end of the day she sorts mail for posting. Leroy looks after the customers. He informs them about the range and prices of the products and where to find them. They can ask him directly or use the online support available to look at new products, order goods or send a query by email. He organises credit facilities, or delivery of the products if customers require this. If they have any problems or complaints, it is Leroys job to sort them out. He gives after sales advice too. Jayne is in charge of researching what customers want and ensuring they are fully informed about the products by placing advertisements on their web site and in suitable newspapers etc. She researches potential new products for the company and advises on their development . She also displays the products at trade fairs and sends out mail-shots to potential customers. Another of her jobs is, to monitor sales she does this using a spreadsheet. Julia is an accountant. Each day she checks financial documents such as orders and invoices, ensuring they are correct and putting them on the computer system. She ensures all the bills are correct and sends out invoices and statements to customers. Once a month she deals with the pay roll using the SAGE payroll software ensuring everyone is paid his or her salary. She also monitors the spending of the other departments and completes on-line tax returns when they are due. Sue places advertisements for new employees when other departments need them. She handles the letters of application for new jobs and organises the interviews. Sue also sorts out the induction for new employees and ensures they have job descriptions. Information on employees is kept in a database. If anyone needs training it is upto Sue to sort out the best way to do this. She also monitors the performance of all employees and deals with any problems (dealing with them as individuals or via the unions). It is her job to ensure employee laws are met too.

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