A2 Business Unit 4
Aim:
 Understand business’ missions, aims and
objectives.
Objectives:
 Define aims and objectives.
 Describe the hierarchy of objectives.
 Analyse the relationship between corporate
strategies and corporate aims and
objectives.
Choose one of the following businesses, and
write:
 An overall aim for that business.
 Three objectives for that business.
 How
does the opening statement about what Virgin
stand for assist when deciding how the business
should grow?
 What
strategies does Virgin use to achieve the
growth of a new business venture?
 From
the opening statement, can you tell what
Virgin’s long term aims are?
Definition:
 Long term targets that will enable the
business to fulfil its’ mission.
 Focus
the business and provide a framework
on which the objectives and strategies can
be decided.
 Can
be used to judge business success.
1
• Set high standards that are
recognised as the benchmark by all
our stakeholders.
2
• Have a brand portfolio that will lead
the industry.
3
• Demonstrate unparalleled expertise
in formulating, marketing, selling
and distributing own brands.
Task:
 Bearing
in mind the structure and content of
the Boots corporate aims, re-write you aim,
for the company you selected at the
beginning.
Definition:
 A declaration of the organisations’
purpose, principle business aims, identity,
policies and value.
 Should
form a link between aims and
objectives.
 Stakeholders
and employees should be able
to clearly see the vision and values of the
business.
Our mission is to become the world’s leading
pharmacy-led health and beauty group. We
will seek to develop our core businesses of
retail pharmacy and wholesale across the
world and become a significant player in
many major international markets.
MISSION STATEMENT
 In
your group, bearing in mind the structure
and content of Boots’ mission statement.
 Write
a mission statement for your business
which you selected at the beginning of the
lesson.
 Swap
your mission statement with another
group.
 Edit
the other groups mission statement or
re-write to make it better.
Definition:
 Short term goals and targets for a business
 How it is going to achieve its aims.
Determined by:
 Culture
of the organisation.
 Private
or Public sector business
 Age
of the business.
• Building on the expertise,
internationally recognised
brands, and balance sheet
of the group, our growth
opportunities will be
further enhanced.
Growth
• It will enable us to expand
our retail network in
existing markets as well as
new geographical
territories.
S
M
A
R
T
• Specific: define what the firm wants to do.
• Measurable: quantifiable target. E.g. 10%
• Agreed: discussed and mutually agreed.
• Realistic: to motivate people.
• Time specific: time based target.
Task: Critique Boots’ growth objective and
re-write to improve
Definition:
 Medium to long term plans detailing how the
company intends to achieve its objectives.
 Often
 Large
based on the outcome of a SWOT.
amounts of investment, therefore
difficult to change.
Operational Strategies
Designed to increase efficiency
through economies of scale, or the
best mix of capital and labour. E.g.
Flexible workforce and improving
market research.
Corporate Strategies
Securing the long term future of the
business through acquisitions and
mergers.
Types of Strategy
Generic Strategies
Focus on gaining competitive
advantage by making the most of
the strengths of the business.
Global Strategies
Establishing operations in more
than one country, in order to take
advantage of different economic
conditions. May be to lower costs,
or reduce the impact of changes in
exchange rates.
Internal Growth
• Increasing sales and
profit, through
internal growth.
• Safest option, but
takes a long time.
• Example: Tesco
External Growth
• Takeovers, mergers.
• Achieve results more
quickly.
• May be proffered
option for
international
development.
• Risky.
Aims
Mission
Statement
Corporate
Objectives
Corporate Strategies

New strategy to drill 22 new oil fields in
Iraq.

Create an aim for this strategy.

Create 2 objectives for this strategy.

Outline which type of strategies will be used.

Outline what type of growth this is.

Create a spider diagram of the stakeholders who will
be affected by this strategy and present any conflicts
of interest between these stakeholders.
 Research
and record the following for your
chosen business:
1)
One Aim
2)
Two Objectives
3)
One Mission
4)
One Strategy the business is looking to
introduce.