• Specific: the plan should be clear about what the business’s goals are. For example, aiming to increase sales by 5%.
•Measurable: the business must be able to measure its performance against the plan. For example, measuring sales against the company’s sales figures for the
year.
• Agreed: the plan must be agreed on by all stakeholders. For example, all directors must agree to the plan.
• Realistic: the plan must be achievable. For example, if a business’s plan is to grow sales but its product is in decline, its goal is unrealistic.
• Time-bound: the plan should have a time frame. For example, aiming to increase sales by 5% within a year.
MISSION STATEMENTS
A business’s overall or main goal is called its mission statement. It is usually short and to the point.
For example, Ikea’s mission statement is ‘to create a better everyday life for the many people’. This mission statement indicates Ikea’s social values, as well as its aim to create products that will satisfy its customers’ needs and wants.
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A short written statement of a business’s overall or main goal is known as its mission statement.
Mission statements In pairs, research the mission statement of a business of your choice.
Prepare a short presentation for the class to explain what the statement says about the business’s values and aims.
An organisation with good planning is more likely to succeed as it will be more efficient and any potential problems will be identified before they arise.
A business must also show evidence of planning in order to secure money from a financial institution.
