1. Today’s Lesson To be able to identify different Aims and objectives
To describe the aims of public and voluntary sector businesses
To describe the aims of private sector businesses
To be able to describe different strategic options.

2. Aims and Objectives
Aims give a general sense of direction for planning. Eg: Ryan Air: To be Europe’s leading low-cost airline.
The objectives break down the aims into more specific targets. Eg Ryan Air objectives:
To undercut the fares of rivals
To take over other similar airlines
To increase sales
To increase destinations flown to each year

3. SMART AIMS Specific Measurable Achievable Realistic Time related
Example: England wants to win the 2007 Rugby World Cup

4. Quantitative analysis – based on numbers
What is happening to sales – rising or falling?
How do sales compare to this time last year?
What is our current market share?
How do our prices compare to our rivals?
Are our profits rising or falling?
Have the costs of running the business risen in the past year compared to last year?

5. Qualitative analysis – about feelings, instincts, trends - more emotional!
Are our customers still satisfied with the range of products and services we offer?
How do specific pressure groups view us?
Do we think that our competition has a competitive edge on us because they use technology more effectively?

6. ACTIVITY
Search for a voluntary sector organisation and try to find what its strategic aims and objectives are. Look for ‘about us’ or ‘Corporate information’ on their websites.
Focus on how they fund raise and what they want to do with the money they receive

7. QUALITY ASSURANCE – public and voluntary sector
A very important aim to most organisations. It refers to something or somebody doing what is expected of them. Eg: your local council is responsible for ensuring the bins are emptied every week.

8. ACTIVITY – Primary Health Care Trusts
Look at the Tunbridge Wells & Maidstone Health Care Trust and describe how they have fallen short of delivering quality to their patients and the community as a whole. What specific aims have they NOT met?

9. PROVISION AT OR BELOW COST – public and voluntary sector
The Government provide a lot of services below cost:
Free bus and rail passes
Free eye testing and free prescriptions
Free hospital treatment
ACTIVITY – please give more examples

10. Increasing revenue and cutting costs
Improving the product
Raising prices
Lower prices in the hope you sell more
Spend more on advertising a product

11. Cutting Costs Reduce the number of staff you employ
Cut down on fixed costs – switch lights and heating off when possible
Reduce wastage of resources (paperless office)
Change staff contracts

12. PROFIT MAXIMISATION – PRIVATE SECTOR
Make the highest profit possible!
Sometimes this has to be sacrificed for short term objectives eg: investing in new stores/branches abroad. This will secure long term profits.

13. SURVIVAL – Private Sector
ACTIVITY
New businesses can threaten the survival of existing ones. Can you give examples in the following categories:
Books
Clothing
Airlines

14. BREAKEVEN – Private Sector
The need for businesses to cover their costs with their revenues –
Raw materials (variable costs)
Staff wages (semi-variable costs)
Fixed costs