1. 1.2 The organisation 1.2.1: Business objectives and their importance
UNIT 1.1

2. Lesson 5: Revison- Using the Specimen question paper
1.2 The Organisation
Target
Learning Objective
Outcome
Who?
Keywords 
Demonstrate an understanding that businesses can have several objectives – and the importance of these can change
Understand the need for objectives in business
Identify the importance of businesses having objectives
ALL C
Aims
Mission
statement
Objectives
Profit maximisation
Demonstrate understanding of different objectives such as growth, profitability and market share
Aims of private and public sector enterprises
MOST B
SOME A 2

3. Aims An aim is a goal or target.
A business may have more than one aim.
Aims should always be appropriate to the business activity and size of the business.

4. Example of aims
The main aim of the Australian football team in 2012 was to win the World Cup.
This aim would not have been appropriate for a local club.

5. Example of aims
A school or college may aim to improve its examination results (this links to the core activity)
A supermarket may aim to increase its profits.
Microsoft wanted to gain a share of the computer games market with its Xbox. This aim would not have been appropriate for a small, local computer company.

6. Types of business aims
A business aim does not always have to be to make profit

7. Types of business aims: Private sector
To survive as a business or expand
To make a profit
Growth
Increase market share
Image, reputation and social responsibility

8. Aims: Public Sector Proving health care Providing education
Providing community activities

9. ‘To boldly go where no man has gone before’
Mission Statement
The overall reason for a business’ existence is known as its corporate aim or mission.
Eg. A business could set out to be ‘the lowest cost producer in Europe's or ‘the worlds favourite car hire firm’.
A mission statement is meant to inspire and define the underlying purpose of the organisation
‘To boldly go where no man has gone before’
-Star Trek

10. From Mission Statement to Objectives
A mission statement may be motivating but it lacks the specific information needed for planning.
-What does ‘best industry mean’? Or ‘Most profitable’?
To plan properly a business needs to turn the mission into a objective.

11. Distinction between aims (or mission) and objectives
Mission: The purpose of the business
Aims: The goals the business wants to achieve
Objectives: Practical steps to achieve the goals – usually quantified
An aim is what you set out to do
An objective is a target you want to achieve

12. ‘To increase profits by 20% over a five-year period’
Objective
Will specify exactly what the business wants to measure, how much of an increase it wants to measure and when it wants to achieve its target.
‘To increase profits by 20% over a five-year period’
The business then has to turn this overall objective into more detailed targets for individual departments and managers.

13. Objectives Objectives are steps which help to achieve an aim.
All objectives should be measurable – so that achievement can be checked.
All objectives must be monitored regularly – to check achievement.
For example, see next slide.

14. Objectives The best objectives are SMART. S M A R T Specific
Measurable A
Agreed R
The importance of agreeing objectives with people who are involved is a useful discussion point. No-one likes to be faced with achieving imposed objectives.
Realistic T
Time-constrained

15. Example of SMART objectives
Save £130 for a holiday M
£5 per week A
Friends informed! R
Leaves £20 for spends
Students could be asked to suggest SMART objectives for other personal aims they may have, such as learning to drive, losing weight, keeping fit. T
Do for 6 months

16. Setting and
Monitoring
Aims
And
Objectives

17. Activity Write out your own aims for the next 12 months
Under each aim write at least one SMART objective for yourself

19. Why set aims and objectives?
Aims provide a focus for the business.
Aims highlight key areas of development and achievement.
Objectives ‘break down’ aims so that they are easier to achieve
Objectives can be ‘shared’ so that many people are responsible for their achievement in their own areas.
Again it is useful to focus the student on personal aims. If they don’t know what they want to achieve, it is more likely they will ‘drift’ rather than focusing on key areas of activity. Students could suggest personal aims they have.
The link to objectives is important. Aims without objectives (such as many New Year Resolutions!) are apt to fail. In business, the achievement of aims will be shared amongst many employees/functional areas. Setting objectives and providing each employee/department with relevant objectives for their own area is covered in the next slide.

21. Example of shared objectives
Aim: To improve profits
Objective 1: To increase sales by 10% over the next 6 months
Sales investigate new selling opportunities
Marketing increase advertising/promotions
Production produce more to meet increased demand
Distribution increase supply of goods to retailers
Students may be encouraged to suggest other objectives which could help to improve profits, besides increasing sales. An obvious objective is to reduce expenses or costs of making the product. This simply illustrates that one aim may result in several objectives.
An objective is likely to affect most areas of an organisation. Students could consider how their school or college as a whole would be affected if there was an aim to increase student numbers by 10% over the next year (which would put additional pressure on facilities and resources).

23. Summary Mission: The purpose of the business
Aims: The goals the business wants to achieve
Objectives: Practical steps to achieve the goals – usually quantified.
Aims must be relevant to the organisation.
Objectives are steps to achieve targets.
Objectives can affect everyone in the organisation.
Objectives must be monitored regularly.
The importance of monitoring and the factors which affect the achievement of aims and objectives are covered in Presentation 1.1b.

24. p
Businesses work to broad goals, which may be broken down to objectives.
Objectives should be SMART
Broad objectives usually relate to profit, growth & market share

25. Sell this Product The challenge:
Identify an important feature/concept from this lesson…. ‘Sell it’ to the class.
‘Our product ‘setting aims’ are like no other because…’
‘Your company needs to ‘have a mission statement because’ our product because…’
‘Setting Objectives will revolutionise…
‘Benefits of setting aims is groundbreaking because….’

26. Plenary Level achieved_____
What do you now know as a result of today’s lesson?
What are your areas for improvement? What are you going to do about this? 26

27. 1.2 The organisation 1.2.2: Stakeholders and their differing objectives
UNIT 1.1

28. Lesson 5: Revison- Using the Specimen question paper
1.2 The Organisation
Target
Learning Objective
Outcome
Who?
Keywords 
State the role of the different groups involved in business activity and their objectives; consumers, employees, managers, owners, financiers and shareholders
Identify, describe and explain the objectives of different stakeholder groups
ALL C
Managers
Shareholders
Stakeholders
Suppliers
Explain the stakeholder role
Use examples to illustrate such objectives
MOST B
SOME A 28

29. What are stakeholders?
People or organisations with a special interest in a business.
This is normally because they are directly affected by the business and how it operates – both now and in the future.
The term ‘vested interest’ could usefully be introduced at this point. The obvious point that each student is a stakeholder in the school or college – and in organisations he/she visits as a customer or member applies here.

30. Employees and managers Owners and shareholders
Types of stakeholders
Customers
Employees and managers
Financiers
Stakeholders
Owners and shareholders
Suppliers
Pressure groups
The local community
The government
The term ‘directors’ could be added to employees and managers. The common interests of owners and shareholders (eg profit) will help to link these groups. Any current issues in the local community/papers could be highlighted.
Students may not know the term ‘pressure group’ or may have a narrow view of it, eg environmental groups such as Friends of the Earth or Greenpeace. It would be useful at this point to extend this perception to all groups which represent their members or other sections of society, eg trade unions, charities, professional associations etc. Groups already studying Unit 3 may have fewer problems with the concept of financiers than those who have not yet started that Unit.

31. Power and influence
Some stakeholders are powerful. They can influence how the business operates.
Some stakeholders have little power. The business can virtually ignore their views.
The next slide gives examples of the difference.

32. Identify the powerful Which three have the power?
An individual employee in a large firm
A bank which has lent a lot of money to a small firm
A supplier of a major product, eg Microsoft
A small supplier to a large supermarket
An important customer of a small firm
Hopefully students will recognise that the second and third are those with the power. It is useful to test if students can identify why this is so.

33. Stakeholder interests
All stakeholders have different types of interests:
Customers – price, quality, range of supplies, opening hours, facilities, etc
Employees – pay, working conditions, job security
Owners/shareholders – profit, share price, dividends
The local community – road building, pollution, safety, house values, jobs
It is useful to link this slide and the following one to the way in which stakeholder groups often respond to different types of changes made by an organisation, such as increasing prices or announcing redundancies. Students could be asked to identify one change in each case which would a) negatively affect the group and b) positively affect the group.

34. Stakeholder interests
Government – legal issues, environmental issues, competition
Pressure groups – interests of members and those they represent
Suppliers – price paid for their supplies, further orders
Financiers – profits, return on money invested, repayments of loans
This slide is an extension of the last one. Again students could be asked to identify positive and negative changes and possible responses.

36. Conflict and stakeholders
Conflict can arise in a business because stakeholder objectives are different.
Local community against expansion of business, employees want job security
Shareholders want high dividends, managers want to use profits for investment
Suppliers want high prices for goods they supply, customers want low selling prices
The examples shown on the slide may need to be discussed in greater detail. It might be interesting to ask students to identify one change the school/college could make which would suit staff but not students (or vice versa).

37. Stakeholder summary All stakeholders have an interest in a business.
Different groups have different interests
Interests may conflict
Business will be most likely to respond to the most powerful groups
This slide summarises the main points to be remembered by students.

39. p
A stakeholder is an individual or group that has an interest in decisions taken by a business.
Sometimes stakeholders have the same interests, but their interests may also differ and conflict.
Owners are very important stakeholders. They play a key part in setting up and ensuring the continual success of a business.
Main stakeholders are owners, employees, customers, communities, government, pressure groups, trade unions and employer associations.

40. Grandma’s Trunk
Share with the class….‘When I opened grandma’s trunk I found….’
Keyword
Fact
Skill
Learnt so far in business.
How to play:

41. Lesson 5: Revison- Using the Specimen question paper
1.2 The Organisation
Target
Learning Objective
Outcome
Who?
Keywords 
State the role of the different groups involved in business activity and their objectives; consumers, employees, managers, owners, financiers and shareholders
Identify, describe and explain the objectives of different stakeholder groups
ALL C
Managers
Shareholders
Stakeholders
Suppliers
Explain the stakeholder role
Use examples to illustrate such objectives
MOST B
SOME A
COMPLETE 41

42. Plenary Level achieved_____
What do you now know as a result of today’s lesson?
What are your areas for improvement? What are you going to do about this? 42

43. 1.2 The organisation 1.2.3: Aims of private and public sector enterprises
UNIT 1.1

44. Lesson 5: Revison- Using the Specimen question paper
1.2 The Organisation
Target
Learning Objective
Outcome
Who?
Keywords 
Demonstrate an awareness of the aims and objectives of enterprises in both private and public sectors
Describe and explain the different objectives of organisations in the different sectors in an economy
ALL C
Public Enterprise
Non-Profit-making
Private Sector
MOST B
SOME A 44

45. Public & Private sectors
The aims and objectives of businesses will be different depending on whether they are operating in the private or the public sector.

46. Activity Pg 38 of your text book. Complete exemplar exam question
Identify A01
Explain A04

47. p Aims and objectives give organisations a direction to work towards
Private sector organisations seek to make a profit, usually the main focus for their aims and objectives.
Public sector organisations may seek to make a profit but will focus on public service.

48. Unwrap the ‘present’ answer the question (teacher prepare before hand)

49. 1. 3 Changing business environment 1. 3
1.3 Changing business environment : Government influence over decision making by using economic policy measures
UNIT 1.1

50.  1.3 Changing business environment
Lesson 5: Revison- Using the Specimen question paper
1.3 Changing business environment
Target
Learning Objective
Outcome
Who?
Keywords 
State the role of the government in influencing decisions within local, national and international contexts and explain how business may react
Identify need for intervention
Show understanding of the impact of intervention in terms of business decisions e.g. what is produced and how
Give examples of intervention both to support and control the impact of business activity on people, the economy and the environment
ALL C
Direct Tax
Fiscal Policies
GDP
Indirect tax
Inflation
Monetary Policies
Money Supply
Public Expenditure
Demonstrate an awareness of the impact that tax and interest rate changes might have on business decisions
Know how interest rates affect business
Know how different tax changes affect business
Understand how business decisions will be affected by such changes
MOST B
SOME A 50

51. Starter
Pg 39 Question 1 - 4

52. Group Activity
Why Does the government want to influence business and the economy?
How does a governent get its money
How does the government spend its Money?
How do changes in taxation affect business?
Put in four groups
Receive a topic
mins plan
5 min present

53. Activity Pg 50 – 62 ‘Complete Business Studies Titley Print as booklet
In group
Discuss
Note
Pg 50 – 62 ‘Complete Business Studies Titley
Print as booklet
NEED TO PREPARE 53

54. p In every country the government intervenes in economic activity.
Reasons for intervention includes provisions of essential services and protecting weaker members of society
Examples of government intervention include taxes and subsidies and running services such as public transport.
Taxes earn large revenues for governments; they also discourage certain types of activity.
A Subsidy is a payment to encourage certain activities
Rises in interests rates can reduce profits; a fall encourages borrowing and can lead to more spending.