BTEC Business Level 3 - Unit 1 Learning Aim B: B2 Aims and Objectives, Mission, Vision and Values

Summary

This video explores the organization of businesses, focusing on the differences in aims and objectives between private, public, and not-for-profit sectors. Key topics include mission, vision, and values, with examples from companies like Google, Apple, and Tesco. The video also covers the importance of SMART objectives (Specific, Measurable, Achievable, Realistic, and Time-bound) and how businesses set goals to survive, grow, and expand. Practical examples guide viewers on creating objectives for a new business. The video ends with a task to research the mission, vision, and objectives of selected organizations.

Takeaways

• 📝 The mission of a business defines its purpose and overall goal, often represented in a mission statement.
• 🔍 Vision statements outline where a business wants to be in the future, providing direction for stakeholders.
• 📊 Values represent the principles and beliefs of a business, shaping its corporate culture.
• 💼 Aims are long-term goals for businesses, such as increasing profit or expanding market share.
• 🎯 Objectives are more specific, measurable steps that guide a business in achieving its aims, often framed as SMART objectives (Specific, Measurable, Achievable, Realistic, Time-bound).
• 🏢 Private sector businesses focus on survival, breaking even, profit maximization, expansion, and increasing market share.
• 🏛️ Public sector businesses aim for service provision, cost control, service quality, and meeting government standards.
• 💡 Not-for-profit organizations typically focus on education, alleviating poverty, providing healthcare, and supporting environmental and ethical causes.
• 🚴 SMART objectives ensure goals are clear and attainable, like ‘Sell 600 bikes by the end of 2022’, which is specific, measurable, and time-bound.
• 📈 A mission statement clarifies why a business exists, while a vision statement shows what the business aspires to achieve in the long term.

Q & A

What is a mission statement in the context of a business?

A mission statement is a concise statement created by a business to communicate its overall purpose and reason for existence. It informs stakeholders of the company's goals and direction.

Can you provide examples of mission statements from well-known companies?

Yes, examples include: Google's mission statement, 'To organize the world's information and make it universally accessible and useful,' and Apple's, 'To bring the best personal computing products and support to students, educators, designers, scientists, engineers, business persons, and consumers in over 140 countries.'

What is the difference between a mission and a vision statement?

A mission statement outlines the current purpose and goals of a business, while a vision statement describes where the business sees itself in the future or what it aspires to achieve. The vision provides direction and a sense of focus for the company's future goals.

What are the values of a business and why are they important?

Values are the principles or beliefs that a business upholds. They shape the corporate culture and guide the behavior of employees and stakeholders. For example, the BBC's values include trust, independence, and creativity, which guide their day-to-day operations and decision-making.

What are some common business aims and objectives for a newly established company?

Common aims and objectives for new businesses include survival (especially in the early stages), breaking even, and eventually making a profit. As the business grows, objectives might include increasing market share, expanding operations, or achieving ethical and environmental goals.

How do SMART objectives help businesses set achievable goals?

SMART objectives ensure that business goals are Specific, Measurable, Achievable, Realistic, and Time-bound. These criteria help businesses create clear and attainable objectives, track progress, and ensure goals are aligned with overall business strategy.

Can you give an example of a SMART objective for a business?

An example of a SMART objective could be: 'To develop and release two new apps by the end of 2022.' This objective is specific (developing and releasing apps), measurable (two apps), achievable and realistic (given the time frame), and time-bound (by the end of 2022).

What are the typical aims of businesses in different sectors (private, public, and not-for-profit)?

In the private sector, typical aims include maximizing profit, expanding, and increasing market share. Public sector aims focus on service provision, cost control, and meeting government standards. Not-for-profit organizations often aim to alleviate poverty, provide education, healthcare, and achieve environmental or ethical goals.

What are some examples of ethical and environmental aims for businesses?

Ethical aims may include using fair trade products, ensuring suppliers treat workers fairly, and avoiding exploitation. Environmental aims might focus on reducing carbon footprints, recycling, or using sustainable products. An example is Lush, which avoids testing on animals and uses ethically sourced ingredients.

How does the structure of a business affect its ability to achieve its aims and objectives?

The structure of a business, whether it's hierarchical, flat, or decentralized, plays a significant role in how efficiently it can achieve its objectives. For example, a more decentralized structure may allow quicker decision-making and innovation, helping businesses achieve goals like expanding into new markets.