Unit 1 Introduction to Business P1 and P2 Understanding Objectives

1. P1 and P2 –
Understanding Aims,
Objectives and KPIs
Starter – write down a personal target for you to
achieve in the next 5 years.
Extension – How do you intend on achieving this?

3. Aims are
Long term
targets
Objectives
are short
term
targets

5. KPI = Key Performance Indicator
• Key performance indicators (KPIs) are a vital means by which firms can judge
how well they are performing.
• They allow businesses to identify some of their most important metrics, and
provide a standardised way of determining whether or not they are meeting
their goals, targets and objectives.
• KPIs are often numbers, but will differ from business to business. One of the
most common KPIs measured is average revenue per customer; if this
metric increases over the course of the year, it is a safe bet that something is
going right in your business.
• But KPIs can be used to measure virtually anything. In many business types,
success will not be judged by numbers. Instead, you might use graphics,
words, or almost anything else to communicate your performance.

6. Example of a measurable objective
•“Increase daily footfall from 200 to 300 by
end of December.”
• There are several elements to this statement from a business.
- There is a direction (‘increase’), a KPI (‘daily footfall’), a
benchmark (‘200’), a target (‘300’), and a time frame (‘by end of
December’).
Discussion - Why is Man Utd setting the target of RVP scoring 20
goals a bad objective? How do you set an objective that can
benefit everyone?

14. Plenary – 3, 2, 1
3 things you
have enjoyed
today
2 things you
have learnt
today
1 thing you
could do
better!