P2: Describe the purpose for a business in setting aims and objectives
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To understand why a business sets aims and objectives.
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To be able to describe the purpose of an organisation setting Aims and Objectives

 Overall Strategy
 Organisations and Departments
 Positioning
 Marketing
 Brand image
 Relationships

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Having aims and objectives gives an organisation a strategy.
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SMART targets they can be analysed and it is easier to see what if anything needs to be done to achieve them.
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SMART Targets
• Specific: The business wants to be carbon neutral – this is a definite aim.
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Measurable: It wants to be carbon neutral. This means there’s a number that can be measured.
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Achievable: This means can it be done; Carbon neutrality is difficult for a large organisation but achievable with planning and commitment.
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Realistic: How likely is it to take place? Is there the technology to help? Is there money to do this project? Are there the people to make it happen?
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Time bound: There is a time frame stated (2020)

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An organisations departments need to be clear about the overall strategy of the company.
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They also need to be clear about their own objectives and how these fit in and will help with reaching the long-term goals.
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EG Finance dept control money & minimize spending
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IT want latest equipment
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May have conflict

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Where organisation is in the market
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Supermarkets Tesco’s No1, Sainsbury’s No2 etc
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If a company has a competitor that has a greater market share it needs to consider what it’s competitor is doing right and what it is doing wrong and do something about it to change this.
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EG ?
• new product range, lower prices

 Marketing will help the organisation show itself as a distinctive brand from its rivals.
 Sony and Beko are organisations that make TVs’
 Use same components
 Similar specification. What separates them?
 How much of it is image?
 How much is the product different?

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In modern organisations brand image is important.
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Think of the difference between Aldi and Waitrose.
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Are the organisations that different? How are they similar?
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Some organisations pride themselves on being Premium
• my favourite here is Tropicana juice,
• what is it that makes their product 2 to 3 times more expensive than their competitors?
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Is it actually value for money?

 It might be necessary for an organisation to form close relationships with suppliers or customers
 CBI say SME’s need to do this (2011)
 how might an organisation do this and why?
 They will need to build up trust
 Samsung + Apple did this….

 What will happen if an organisation reaches its goals?
 Do they set more?
 Do they relax?
 What will happen if they do not set more goals?