Business goals

by Business Case Studies on Monday 7th June, 2010

Individuals and organisations can be motivated by having goals. Tarmac focuses on five main goals to aid its delivery of exceptional value. Remembered using the mnemonic DREAM, these are to develop markets, reduce costs, engage employees, act responsibly and manage assets. To achieve these goals requires the commitment of all employees. Within the organisation there are three levels of employees – managers, supervisors and operators. Regardless of where the workers fit into this structure, the aims remain the same. The emphasis for Tarmac is to ensure that the goals are met by having the right workers with the right skills to support its success.

However, businesses are also affected by factors outside their control – external influences. External factors may be political, economic, social or technological (PEST). Government policy, for example, can have a huge impact on the way a business runs. The government's Business Secretary Vince Cable has outlined plans to support businesses and aid economic recovery. He has set out a number of goals to do this, which include encouraging banks to increase their lending to small and medium sized companies and reducing business regulation. The government has declared its determination to reduce the 'red tape' that can obstruct business operations and performance. For organisations like Tarmac, the achievement of their own business goals may well be affected by the realisation of the government's business goals. (BBC News 3rd June 2010)

Questions

  1. List the four main external factors.
  2. Write four goals that might be appropriate for an organisation with which you are familiar.
  3. To what extent might Tarmac be affected by banks increasing their lending to small and medium sized businesses.

Answers

  1. List the four main external factors. a. Political (including legal) b. Economic c. Social (including environmental) d. Technological.
  2. Write four goals that might be appropriate for an organisation with which you are familiar.
  3. To what extent might Tarmac be affected by banks increasing their lending to small and medium sized businesses? On one hand – As Tarmac is a large organisation it is unlikely to benefit from increased lending from banks. However – Tarmac is a business to business (B2B) organisation and sells its products to a range of different organisations including small and medium sized organisations. If these customers benefit from increased lending this could result in more orders for Tarmac.

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