Business+&+Marketing


 * __ August 20: An Introduction __**


 * //What is a business?//** A business is an organization that has been specifically set up to provided some kind of product or service to its customers.
 * Is a school a business?
 * Is the government running a business when it provides services such as a police force?
 * Is a charity a business when it sells nothing?


 * Basic features** distinguish business activities from non-business activities. These are:
 * Businesses are all owned.
 * Businesses need to be set up under certain rules.
 * Businesses need to keep records of what they do.
 * Businesses need to operate within certain laws.
 * Businesses have customers.

Businesses can be small and be made up of just one person, or large with thousands of employees. Businesses can be privately owned or be owned by the state.

Every business has aims and objectives. An **aim** is where the business wants to go in the future, its goals. It is a statement of purpose, such as we want to grow into a profitable business within two years or we want to produce a new product to meet the needs/wants of society.
 * __Business Aims and Objectives:__**

Every business has **objectives**, which will change over time. These objectives are the stated, measurable targets of how to achieve the business aims. Objectives give the business a clearly defined target. Plans can then be made to achieve the aims. It also enables the business to measure the progress towards to its stated aims by enabling the business to measure its progress towards those aims.

The most effective business objectives meet the following criteria:
 * S – Specific** – objectives are aimed at what the business does -- a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.
 * M - Measurable** – the business can put a value to the objective -- $10,000 in sales in the next half year of trading.
 * A - Agreed** by all those concerned in trying to achieve the objective.
 * R - Realistic** – the objective should be challenging, but it should also be able to be achieved by the resources available.
 * T- Time specific** – they have a time limit of when the objective should be achieved -- by the end of the year.

The main objectives a business may have are: A business may find that some of their objectives conflict: growth vs. profit or short-term vs. long-term objectives. Not all businesses seek profit or growth.
 * **Survival** - a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
 * **Profit maximization** - try to make the most profit possible (most likely to be the aim of the owners ans sharholders?
 * **Profit satisfying** - try to make enough profit to keep the owners comforable (probably the aim of smaller businesses whose owners do not want to work longer hours).
 * **Sales growth** - where the business tries to make as many sales as possible, This may be because the managers believe that the survival of the business depends on being large.

Examples of other objectives:
 * Ethical and socially responsible objectives** – some organizations have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.
 * Public sector corporations** are run to not only generate a profit but provide a service to the public. This service will need to meet the needs of the less well off in society or help improve the ability of the economy to function.
 * Public sector organizations** that monitor or control private sector activities have objectives that are to ensure that the business they are monitoring comply with the laws.
 * Health care and education establishments** – the objectives are to provide a service – most private schools for instance have charitable status. Their aim is the enhancement of their pupils through education.
 * Charities and voluntary organizations** – their aims and objectives are led by the beliefs they stand for.

A business may change its objectives over time due to the following reasons: A business may achieve an objective and will need to move onto another one (e.g. survival in the first year may lead to an objective of increasing profit in the second year). The competitive environment might change, with the launch of new products from competitors. Technology might change product designs, so sales and production targets might need to change.

//**__ Assignment: Business Aims and Objectives __ Here are brief details of four businesses: **//
 * ** Joe's Buildings: Joe has noticed there are lots of new businesses created in the building industry. **
 * ** MBS Computers is a new business in the rapidly expanding computer industry, which is owned by two young ambitious entrepreneurs. **
 * ** Great Books is a large book publisher which dominates the market in textbooks **
 * ** PO Post is a government owned postal company which delivers to all parts of the country. **

**Answer the following questions about the businesses identified above: 1. What is likely to be the main objective of the managers of these businesses? 2. How might these businesses try to achieve their objectives? (What might be an aim - goal - of each business?)**

Send your word processed responses as an e-mail attachment to jgrams@hlv.k12.ia.us Use "Business Aims and Objectives Assignment" in the Subject line.


 * //__ August 21: Mission Statements __//**

A mission statement attempts to put into words what a business or organization is all about. It attempts to define in a punchy, understandable phrase:

• tells who your business is • what your business does • what your business stands for • why your business does what it does

What makes an effective mission statement? A good mission statement: • Contains a formulation of objectives that enables progress towards them to be measured • Differentiates the business from its competitors • Defines the markets or business in which the firm wants to operate • Is relevant to all major stakeholders - not just shareholders and managers • Excites, inspires, motivates & guides

Research has found that effective mission statements tend to be: • Brief • Flexible (able to accommodate change) • Business specific and distinctive • Effective at communicating key values • Realistic and achievable • Based on consultation • Supported by senior management

Unfortunately, many mission statements are ineffective. This has led some commentators to question the role of mission statements. Amongst the common criticisms levied are: • Not always supported by actions of the business • Often too vague and general • Often merely statements of the bleeding obvious • Often seen as a PR exercise • Sometimes regarded cynically by staff • Sometimes not a true reflection of reality • Not supported wholeheartedly by senior management

Here are some mission statements from real companies and organizations:
 * McDonalds: "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."
 * Levi-Strauss: "We will market the most appealing and widely worn casual clothing in the world. We will clothe the world."
 * OHCHR: "The mission of the Office of the United Nations High Commissioner for Human Rights (OHCHR) is to protect and promote all human rights for all."

A good place to start in writing a mission statement is with the vision part of the statement. Clarify what you and others intend for the business to be:
 * List 5-10 words or phrases that describe your business. Highlight the three most important.
 * List 3-5 words or phrases that describe the company's ideal image from a customer's point-of-view.
 * List 3-5 words or phrases that describe the company's ideal image from a management and employee point-of-view.


 * List the market opportunities and/or customer needs that your company intends to address (e.g., the business' value proposition).
 * Who are your customers? (This is your target market - more about this later)
 * With your customers in mind, list each service or product your business will provide.
 * List 3-5 measures of your business' success.

Visit the website of a large, well-known business and find out what its aims, objectives, and mission statement are. Word process your findings on a separate word document to send as an e-mail attachment to jgrams@hlv.k12.ia.us Use complete sentences in your responses. Use an appropriate subject line.//**
 * //__ Assignment: Analyzing a Well-Known Business __
 * The name of the business you have chosen
 * The mission statement
 * The aims of the company
 * Three SMART objectives which will help your chosen business achieve each of its aims
 * Suggest how your chosen business could monitor its progress towards achieving its objectives.
 * List four factors which may prevent your chosen business from achieving its objectives.