ROGA V2 Goals online lesson 5 2020 v2 ROGA

1. BUSINESS GOALS

2. LESSON GOALS
This lesson will relate to the following syllabus outcomes:
Learn about:
 Achieving Business Goals
 profits, market share, growth, share price, social, environmental
 achieving a mix of the above goals
Learn to:
 Discuss specific examples of business goals, the strategies to
achieve them and the dependence/conflict between goals
 Debate ‘Businesses are only interested in maximising profit’

3. What is a “Goal”?
• A goal is a desired outcome (target) that an individual or
business intends to achieve within a certain time frame
• Having a desired outcome to
work towards can help you
focus your actions to ensure
each step is a step closer to
achieving the goal.

4. Thinking about your own goals.…
What outcome/s would you like to achieve?
See Activity On Next Slide
Achieving Band
6 in the HSC
Travelling across Europe with a friend
Completing a marketing degree,
becoming a marketing manager
and earning $200k by 25
Maybe……
Or……

5. Activity: Your Goals
• Describe 2 personal goals you have
• Identify when you want to achieve them
• Outline what planning will be required to achieve these
goals
Task: Create a document in your business studies folder.
Write your 2 goals in your document and save in your folder
We’ll also come back to your goals in our canvas discussion at the end of the lesson

6. Goals OverviewTypes of
Goals
• Financial
• Non-
Financial
Purpose
of Goals • 4 reasons
Setting
goals • S.M.A.R.T.
In looking at goals in relation
to business, we’ll look at
three aspects:
• Purpose of goals;
• Types of business goals;
and
• Goal setting.

7. Purpose of Goals
Write these notes in your document saved in your business studies folder
1. Targets: Goals allow business to set targets for where they are
going and how they are going to get there. This helps
communicate to staff what they’re working towards.
2. Measurement: Goals offer business a benchmark (a standard)
which business performance can be measured against.
3. Motivation: Goals offer something to aim towards and can
encourage and motivate employees through a sense of
satisfaction when they have achieved the goal.
4. Employee ‘buy-in’: Commitment to the goal through
participation in goal setting and achievement helps employees
feel personally committed to the success of the business

8. Types of Business Goals
There are 6 types of business goals. 4 relate to financial aspects of the
business and 2 relate to non-financial aspects.
Recreate the following goals chart in your document saved in your business studies
folder
• Profits
• Market share
• Growth
• Share price
• Social
• Environmental
Financial goals
Non-Financial goals

9. Setting Goals
To be effective, goals need to be specific and challenging.
Look at the following examples, which do you think is specific and challenging?
1. We will increase sales this year
or
2. We will increase sales in NSW stores by 5% over the next 12 months
Over time, business’s will change based on changes in the internal and external
business environment. Business’s that can adapt their goals and ensure goals
are specific and challenging will be more successful in achieving outcomes.
One way for business to achieve this is to create S.M.A.R.T goals

10. S.M.A.R.T Goals
Using pages 145 and 146 of your textbook and the worksheet attached
in canvas, complete the following acronym and definitions.
S - ______________
M - ______________
A - ______________
R - ______________
T - ______________

11. S.M.A.R.T Goals
Click on the link below and watch the video on setting S.M.A.R.T goals
in business with a specific focus on the Marketing function of the
business.
https://www.youtube.com/watch?v=xqFgYMc7ke
8

12. Writing Activity
Using your worksheet on canvas, write your response
to the following statement about Goals:
Discuss what is meant by the statement
“begin with the end in mind”.

13. Let’s look at each of the BUSINESS
goals
One of the basic financial goals for a business
is….
Maximising Profit

14. Maximising Profits
• Profit is what is left after the costs of producing and supplying the product
(expenses) have been deducted from money earned from sales (revenue)
• REVENUE – EXPENSES = PROFIT
• Profit maximisation occurs when there is a maximum difference between
the total revenue (number of sales multiplied by the price) coming into
the business and total costs being paid out.
Write these notes in your document saved in your business studies folder

15. Maximising Profits
Page 147 Textbook
Write these notes in your document saved in your business studies folder
Profit maximization can be simplified into the following equations:
Task: Write a S.M.A.R.T goal a business would write to
maximise profits

16. Next…. Let’s look at Market Share
Increasing market share is an important
goal for business. Small market gains
often translate into large profits.

17. Coles v Woolworths - Market Share Battle
Read the snapshot on page 149 of your textbook

18. Market Share
• Market share refers to the business’s share of the TOTAL industry sales for a
particular product.
• Market share is measured as a percentage (%) of the total industry e.g. Woolworths
has 39% share of the packaged grocery market
• Market gains often translate into more customers and larger profits
• The methods a business uses to inform, persuade, and remind a market about its
products are known as promotion.
• Promotion is a strategy used to increase market share
Write these notes in your document saved in your business studies folder

19. Supermarkets Market Share
36%
33%
13%
9%
9%
Woolworths
Coles
Aldi
IGA
Other supermarkets
Source: http://www.roymorgan.com/findings/7234-woolworths-coles-aldi-iga-supermarket-market-shares-australia-march-2017-201705171406
When looking at supermarkets, their share of the total market in 2017 is pictured
below:
Task: What does the diagram above tell you
about the market share of Coles?
Write your response in your document saved in your business studies folder
2017
2020

20. To calculate your Market Share:
Company Total Revenue (Total Sales)
Total Market Sales
MARKET SHARE
Task: Write a S.M.A.R.T goal a business would write about increasing
market shareWrite these notes and the task response in your document saved in your business studies folder

21. Activity: ‘A piece of the pie!’
Manufacturer Total Sales Share (%)
Masterfoods $430,000
Cerebos (Fountain brand) $200,000
Heinz $200,000
Private Label $150,000
Other $20,000
TOTAL $1,000,000 100%
Below is a table of manufacturers that compete in the
Tomato Sauce Market in Australia
i. Copy the table below
ii. Calculate the Market Share (%)
iii. Create a pie chart, based on the data
The Tomato Sauce
market is estimated at
$110 million
Create your response in your document saved in your business studies folder

22. LOGIC LIST
• Goals
• Benchmark
• S.M.A.R.T
• Profit Maximisation
• Market Share
• Promotion
Update your “Logic List” in your workbook with the following:

23. ‘The main goal of a business is to maximise profits’.
• Define the term ‘profit maximisation’.
• Recount under what circumstances a manager may be prepared to accept
reduced profits in the short term.
• In your opinion, discuss whether maximising profits should be the only goal
of a business.
Canvas Discussion Forum Activity
Write your response in your class discussion forum on Canvas