Objectives
Aims of a Profit Making Business
Types of Organisations
Small trader
Partnership
Private
limited
company
Public
limited
company
Cooperatives
Local
authority
direct labour
organisations
Quangos
Charities
Building
societies
Local
Authority
Nationalised
industry
Government
department
Profit
Is the profit motive sufficient?
• Short term
– Quick return
• Long term
– Investing for the long term
• Market share
– Increase our share of the market
– Move into a market not already saturated
• Market growth
– (organic or through acquisition )
• Satisficing
– Where I live is more important than the maximum return
for shareholders
• Survival
• Lifestyle
• Loss maker
– Avoiding paying to much tax
• Loss leader
– Killing off the new competition
Some possible other objectives
•
•
•
•
•
•
•
fairtrade
Buy local
Sustainable
Environmental
Peaceful
Humanitarian
Educational
Regulatory
Organisations such as Suffolk County Council
have many objectives. Suffolk is a public sector
organisation and one of its objectives is to
regulate in areas such as planning, Parking,
health and safety, food safety and esuring
trading standards are maintained.
Community
Charity
A charity’s objectives must be consistent with
their terms of reference.
Government
Objectives of government should be consistent with
the manifesto produced before an election.
In reality things change and objectives change too.
M1 - Compare the methods used
to achieve these different
objectives, with examples from
two different organisations.
BTEC Assessment
General – Learning Outcome for this assignment.
Understand the purposes of organisations and their goals:
• Types of business organisation: sole traders;
partnerships; companies (public, private); cooperatives;
• charities; state enterprises; international businesses;
• Objectives: profit maximisation, profitability; sales
(value, volume); growth; internationalisation; market
• share; market power; welfare; stakeholders;
coordinating activity to achieve goals
M1 - Compare the methods used to
achieve objectives in two contrasting
organisations
For M1, learners should, for two selected organisations,
compare their objectives and the methods used to
achieve these objectives.
Sufficiently contrasting organisations should be selected
and the activity can build on the work for P1 and P2.
For example, a welfare-maximising healthcare provider
will provide screening and preventative services which
help prevent more complex problems that would be
costly to treat and eradicate.
M1 looks at 2 contrasting
organisations
• Private V Public?
• Voluntary?
compare their objectives and the methods used
to achieve these objectives.
• Break down the information into:
• Objectives – be specific.
• How the business tries to achieve these
objectives.
Oxfam - Objectives
Oxfam is a global movement of people who
share the belief that, in a world rich in
resources, poverty isn't inevitable. It's an
injustice which can, and must, be overcome.
Oxfam is “dedicated to building a just and safer
world focusing on people's basic rights”
(http://www.oxfam.org.uk/what-we-do/about-us)
Oxfam – How does it achieve its
objectives
“Oxfam. What springs to mind? Charity shops
and second-hand clothes? Africa? Think bigger.
Much bigger. Last year, our emergency and
development work reached a staggering 13.5
million people! Thanks to our amazing
supporters.”
http://www.oxfam.org.uk/what-we-do
Oxfam
• 4.3 million
people reached by health promotion activities
• 700,000
people benefiting from support to improve
their crops, goods or services
• 2.6 million
people benefiting from improved sanitation
facilities
•
http://www.oxfam.org.uk/what-we-do
D1 - Selecting one organisation,
discuss how its performance
relates to its objectives:
• Is the organisation meeting its
objectives?
• Explain how.
D1 - Analyse the performance of
a selected business against its
stated objectives
For D1, learners should look at the behaviour of a
selected business and explain its behaviour in terms of
the market in which it operates.
A sole trading convenience store on a local high street
near to a railway station might provide food for thought.
It operates in an industry with few barriers to entry but it
exploits its location by charging consumers high prices for
bread and milk because for the weary homeward bound
traveller they constitute distress purchases.
D1 looks at
Performance against objectives