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The purpose of this task is to show how a range of business organisations operate. This unit will help
me to understand the following:
Aims and objectives of businesses ( SMART)
The organisational structure
Internal/external factors ( such as SWOT & PESTLE )
P1; describe the type of business, purpose and ownership of two contrasting businesses
Aims and Objectives
Each organisation must have an aim and objective in order to give them a guideline to work towards.
This is to keep individuals highly motivated as well as keeping them working at their full potential. An
aim is the main goal a business wants to achieve over the next twelve months. Objectives are set in
place as targets that help them meet their aim. To make it easier for the owner, it is recommended
they use the technique ‘SMART’. It is important to be Specific when outlining an objective in order
to make it easier to understand what exactly needs to be achieved. The objective must be
Measureable; this allows the workers to understand how close they are to achieving their targets. It
must be Achievable and Realistic as aiming for a target that is unachievable will eventually bring
workers into disbelief, it must remain achievable by first looking at the circumstances and also at the
resources available. In order to make this technique more successful, it should be put under timed
conditions in order to encourage all employees to work at their very best.
Business A: F.R Furniture. The aim of the business is to survive. The objectives set out to reach this
aim are: to break even as well as increase sales by 5% in the next three months.
Business B: the National Health Service. Aim to provide the population with efficient and effective
services. Objectives set out to reach this aim are: to deliver more services to the highest standards in
more parts of the UK by 2020.
Size
Businesses can be qualitatively grouped based upon the total number of firms owned and also the
location. There are four different groups in which a business may operate and there are several
factors which may influence owners to work on specific scales. A business may be considered either
of the following; Local, National, International or global. A local business is an organisation that only
provides a good or service to its local population, to expand; a business that only provides for its
local community. A national business is a business which supplies goods and services inside the
parameter of its country, firms are likely to be spread across the country. An international and
global business are usually misinterpreted to be operating on the same scale, however this is
incorrect. Although both international and global businesses provide a good or service in more than
one country, a global business such as ‘Apple’ has products available in lots of countries all over the
world, whereas other businesses such as ‘Primark’ only provide goods in two or three regions in the
world, therefore considered international.
F.R Furniture is considered a local business as the owner only owns one firm and the purpose of that
firm is to only provide goods to the local community. It is not considered national as the owner is not
able to provide his products to residents outside of his community. It is definitely not an
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