Aims, purpose, values and structure

Question 1

What are the three main types of organisations?

Answer 1

Private sector
Public sector
Voluntary or non profit

Question 2

What are private sector organisations?

Answer 2

Owned by businesses
Exist to make a profit
Trade in a competitive market

Question 3

What are public sector organisations?

Answer 3

Funded by the Government
Provide services to public
Do not exist to make a profit
Are financed through the public

Question 4

What are voluntary or non profit organisations?

Answer 4

Motivated by the desire to achieve social goals (improving public welfare)
Reinvest money rather than creating profit
Benefit the public
Includes local community projects and groups

Question 5

Examples of private sector businesses

Answer 5

Thomas Cook
Co-op
Alton Towers
Premier Inn
Topshop

Question 6

Examples of public sector businesses

Answer 6

NHS
British Army
BBC

Question 7

Examples of voluntary organisations

Answer 7

National Trust
British Heart Foundation
Help for Heroes

Question 8

What is organisational culture?

Answer 8

The way an organisation demonstrates its values and purpose

Question 9

What are business values?

Answer 9

They are the core principles or standards that guide the way an organisation does business. They sum up what the business stands for and what makes it special. Core values always remain the same.

Question 10

What is a mission statement?

Answer 10

The purpose of the organisation or its reason for existing
It is a written declaration of an organisations core purpose and focus
Defines the business, objectives and approach

Question 11

What is a vision statement?

Answer 11

Describes the desired future position of the company

Outlines what the business hopes to achieve

Question 12

Why are mission and vision statements important?

Answer 12

Clarify direction, aims and objectives

Promote a specific organisational culture and attract customers/stakeholders

Question 13

What is a business aim?

Answer 13

It is a statement of purpose about where the business would like to be in the future

Question 14

What is a business objective?

Answer 14

The stated, measurable targets of how a business plans to achieve its aims

Question 15

Why are aims and objectives important?

Answer 15

Provide a clear direction
Able to plan activities aligned with aims
Promote a culture that works towards the same goals