Why Do Businesses Exist? Aims & Objectives
What is an aim? <ul><li>An aim (or objective) is something that an organisation(or person) sets out to achieve.  </li></ul>
Businesses Exist ... <ul><li>To develop a good idea  </li></ul><ul><li>To make profits </li></ul><ul><li>For charitable re...
Let’s look at each of these ...
To develop a good idea ... <ul><li>Also known as  enterprise </li></ul><ul><li>People who are willing to take risks to dev...
Virgin started off as a mail order record business but now includes ... <ul><li>airline </li></ul><ul><li>trains </li></ul...
<ul><li>Most of them came about because Richard Branson thought he could  improve  on goods or services which  already exi...
   Read the article on Worksheet Why Businesses Exist – Worksheet 1 and answer the questions
Still looking at  why businesses exist ...
To make a profit ... <ul><li>By selling something to the public at a price which is higher than it cost to provide </li></...
For charitable reasons ... <ul><li>Volunteers work to support and help others </li></ul><ul><li>Funds are raised in a numb...
To provide a public service ... <ul><li>Services provided by the Government and paid for by our taxes </li></ul>
Public Services include ... <ul><li>National Health Service/hospitals </li></ul><ul><li>Schools </li></ul><ul><li>Roads </...
WHAT ARE THE AIMS OF BUSINESSES?
Most profit-seeking businesses aim to achieve  some  of the following
Survival <ul><li>Making sure that the business does not fail </li></ul>
Growth <ul><li>Increasing the size of the business, perhaps by winning more customers or opening new branches </li></ul><u...
Maximising Profit <ul><li>Making as much profit as possible </li></ul>
Increasing Market Share <ul><li>Gaining more customers, beating the competition </li></ul>
Efficiency <ul><li>Making sure that things are done in the best possible way so that costs are kept down </li></ul>
Quality <ul><li>To produce goods or services of a very high standard </li></ul><ul><li>By Royal Appointment </li></ul>
Some businesses aim to do things other than just making money.  Body Shop  and  The Co-op  are examples of organisations w...
Improving conditions <ul><li>Of the workforce  - many firms provide a variety of “extras” or perks for their employees eg ...
<ul><li>Or of the suppliers  - especially those in Third World Countries who are often very badly paid.  </li></ul><ul><li...
<ul><li>Or of people in the community  - many businesses set aside money to give to charities, especially local ones </li>...
<ul><li>Or the environment  - many businesses have introduced measures to help the environment </li></ul><ul><li>re-cyclin...
    Access the website for Gillette at gillette.com and answer the questions on Worksheet Why Businesses Exist – Workshe...
A Charity might also have different aims ...
<ul><li>Help more people </li></ul><ul><li>Collect as much money as possible </li></ul><ul><li>Recruit more people to help...
    A nswer the questions on Worksheet Why Businesses Exist – Worksheet 3
Public Sector organisations might also have different aims ...
<ul><li>Providing a quality service </li></ul><ul><li>Providing an efficient service - eg hospital appointments within a c...
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Standard Grade Business Management - Aims and Objectives of Business

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Standard Grade Business Management - Aims and Objectives of Business

  1. 1. Why Do Businesses Exist? Aims & Objectives
  2. 2. What is an aim? <ul><li>An aim (or objective) is something that an organisation(or person) sets out to achieve. </li></ul>
  3. 3. Businesses Exist ... <ul><li>To develop a good idea </li></ul><ul><li>To make profits </li></ul><ul><li>For charitable reasons </li></ul><ul><li>To provide a public service </li></ul>
  4. 4. Let’s look at each of these ...
  5. 5. To develop a good idea ... <ul><li>Also known as enterprise </li></ul><ul><li>People who are willing to take risks to develop a business idea are called entrepreneurs </li></ul><ul><li>Richard Branson is a famous entrepreneur </li></ul>
  6. 6. Virgin started off as a mail order record business but now includes ... <ul><li>airline </li></ul><ul><li>trains </li></ul><ul><li>cars </li></ul><ul><li>banking </li></ul><ul><li>drinks </li></ul><ul><li>insurance </li></ul><ul><li>to name but a few! </li></ul>
  7. 7. <ul><li>Most of them came about because Richard Branson thought he could improve on goods or services which already existed </li></ul>
  8. 8.  Read the article on Worksheet Why Businesses Exist – Worksheet 1 and answer the questions
  9. 9. Still looking at why businesses exist ...
  10. 10. To make a profit ... <ul><li>By selling something to the public at a price which is higher than it cost to provide </li></ul><ul><li>Profit is the return on investment made by the owner or owners </li></ul><ul><li>If they are not making a profit, they may decide to sell up and invest in something else </li></ul>
  11. 11. For charitable reasons ... <ul><li>Volunteers work to support and help others </li></ul><ul><li>Funds are raised in a number of ways - coffee mornings, concerts ... </li></ul><ul><li>Red Nose Day for Comic Relief </li></ul>
  12. 12. To provide a public service ... <ul><li>Services provided by the Government and paid for by our taxes </li></ul>
  13. 13. Public Services include ... <ul><li>National Health Service/hospitals </li></ul><ul><li>Schools </li></ul><ul><li>Roads </li></ul><ul><li>Libraries </li></ul><ul><li>Education </li></ul><ul><li>Armed Services </li></ul><ul><li>Police/Fire Services </li></ul>
  14. 14. WHAT ARE THE AIMS OF BUSINESSES?
  15. 15. Most profit-seeking businesses aim to achieve some of the following
  16. 16. Survival <ul><li>Making sure that the business does not fail </li></ul>
  17. 17. Growth <ul><li>Increasing the size of the business, perhaps by winning more customers or opening new branches </li></ul><ul><li>Expanding into the international market ie selling goods abroad as well as in this country </li></ul>
  18. 18. Maximising Profit <ul><li>Making as much profit as possible </li></ul>
  19. 19. Increasing Market Share <ul><li>Gaining more customers, beating the competition </li></ul>
  20. 20. Efficiency <ul><li>Making sure that things are done in the best possible way so that costs are kept down </li></ul>
  21. 21. Quality <ul><li>To produce goods or services of a very high standard </li></ul><ul><li>By Royal Appointment </li></ul>
  22. 22. Some businesses aim to do things other than just making money. Body Shop and The Co-op are examples of organisations which have much wider aims.
  23. 23. Improving conditions <ul><li>Of the workforce - many firms provide a variety of “extras” or perks for their employees eg </li></ul><ul><li>cheap food </li></ul><ul><li>social clubs/sports facilities </li></ul><ul><li>hairdressing and manicures </li></ul><ul><li>flexible hours </li></ul>
  24. 24. <ul><li>Or of the suppliers - especially those in Third World Countries who are often very badly paid. </li></ul><ul><li>Many stores now sell products such as coffee and tea under a special label (Fair Trade) to show that they have paid suppliers a fair price. </li></ul>
  25. 25. <ul><li>Or of people in the community - many businesses set aside money to give to charities, especially local ones </li></ul>
  26. 26. <ul><li>Or the environment - many businesses have introduced measures to help the environment </li></ul><ul><li>re-cycling waste </li></ul><ul><li>using re-cycled materials for packaging etc </li></ul><ul><li>ensuring toxic waste is dealt with properly </li></ul>
  27. 27.   Access the website for Gillette at gillette.com and answer the questions on Worksheet Why Businesses Exist – Worksheet 2
  28. 28. A Charity might also have different aims ...
  29. 29. <ul><li>Help more people </li></ul><ul><li>Collect as much money as possible </li></ul><ul><li>Recruit more people to help </li></ul><ul><li>Open more charity shops </li></ul>
  30. 30.   A nswer the questions on Worksheet Why Businesses Exist – Worksheet 3
  31. 31. Public Sector organisations might also have different aims ...
  32. 32. <ul><li>Providing a quality service </li></ul><ul><li>Providing an efficient service - eg hospital appointments within a certain time </li></ul><ul><li>Cutting costs </li></ul><ul><li>Raising revenue - persuading the Government to allocate more funds </li></ul>

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