My assignment is based on two different types of organisations from the Public Sector Organisation and from the Private Sector Organisation. Throughout my assignment I will outline the rationale of the strategic aims and the objectives of both the organisation that I have investigated on. The two organisations that I investigated on were in John David Sport which represents the Private Sector Organisation and Oxfam which represents the Public Sector Organisation. P3. Outline the rationale of the strategic aims and objectives of two contrasting organisation?
John David’s Sports is one of Worlds most successful leading retail organisation which was established over 20 years back. This organisation offers contrasted range of high quality products to their customers. For example, upper clothing’s to lower clothing’s. They sell products which are manufactured by world’s top brands such as Nike, Adidas etc. JD Sports is an International Business as they have over 100 branches across the Globe.
John David Sports is a private sector organisation so one of their main aims will be to maximise their profit as it is a profitable business. They have many strategies to fulfil their aims such as sales maximisation, keeping ahead of competition etc.
John David Sports have numerous aims which they want to accomplish. One of their main aims is to increase the trust and respect of their customers who have an interest in their business. JD Sports aim is to provide high quality products to reach the needs of their customers and also provide valuable service to their customers. JD Sports have always aimed to become Worlds leading retail organisation who sells famous brand clothing’s and footwear. To accomplish their aims JD Sports opened thousands of stores all around the World so they go beyond all the expectation where ever their customers want to shop. JD Sport also aims to open more branches across the countries so they have more customers shopping in different locations and a high level of profit maximisation.
In order for JD Sports to reach their targets they are needed to provide excellent service to all their customers so the business can be known by the customers. JD Sports provide excellent customer service by employing large amount of staffs who work at each of their branches and the reason for this is that there is enough staff to help out customers when they need any information of any products or service.
JD Sports produce products which are mainly aimed at young buyers who are looking for a trendy style. For example, they produce designer hooded jackets, jumpers and also designer trainers etc. The organisation of JD Sports creates branches in particular location where they know the customers will be attractive.
John David Sports is an organisation which created to maximise their profit due to the fact that they are a private sector business. JD Sports have many influenced stakeholders according to the success of the business. To reach their aims and objectives, JD Sports follow strategies that they believe that can help them achieve more goals.
Profit maximisation is one of the most significant strategies used by a business. JD Sports is an organisation which depends on achieving high level of profit in a long term basis since it can clearly reflect that they are maximising their profit. JD Sports organisation established the output levels and the prices of their products for the reason that it returns the greatest profit.
The total revenue of a profit is equivalent to revenue minus cost and the marginal revenue. Marginal revenue cost is a type of method which is based on total profit in a competitive market where it reaches its maximum point where the marginal revenue is equal to the marginal cost. The reason why JD Sports will aim to maximise their profit is to retain their business and their status. Keeping ahead of Competition: Being ahead of other competitors is another strategy that JD Sports enclose to become more successful.
A business keeping ahead of the competition can evidently show customers that this particular business offers excellent products as well as providing outstanding service to reach customer needs. To keep ahead of competition JD Sports employ large amount of staffs due to the fact that all customers get the attention from the business and get the exact performance of the customer service that they would like. JD Sports also provide high quality product at a low value so it suits the customers.
JD Sports also use other techniques to keep ahead of the competition by organising special dates where they offer one their best product to their customers for half price. This organisation also provide their service all around the country in contrasted location by establishing branches so it is suitable for the customers to shop at the nearest JD store.
Introducing new products is a type of strategies often used by famous organisations as well as JD Sports. To reach this strategy JD Sports launch new high quality products which will attract more customers who have an interest in the business. JD Sports provide designer products which cannot be found in any other clothing retail stores. For example, the manufacturers of JD’s products produced an excellent Nike Air Force 1 trainer which cannot be found in any other stores even in Footlocker. This trainer was one of the most selling products for JD Sports for the past few months. JD Sports also promote their products by advertising it on posters, catalogues, and internet as well as in store display etc.
Sales maximisation is a vital strategy for any organisation since it keeps the entire records of the sales volume and the sales value of the business. Sale maximisation is an important strategy for JD Sports as it keeps the record of all the products that has been sold along side the money that they received from their sales (sales revenue). The reason why this strategy is vital to JD Sports is that they can maximise their sales and by doing that they can decrease the sales of their competitors. For example, JD Sports will have the record of al the sales coming in and out of the business and if they recognise any negative ness in their sales they can easily change all the differences.
Oxfam is one of worlds known Public Sector Business who deals with poverty. They are an independent organisation, registered as a charity, affiliated to Oxfam International, with partners, volunteers, supporters and staff of many contrasted nationalities – part of a Global movement to build a just and safer World. The organisation also gathers all the money that is donated by donators, and uses that money to help young children to educate by building school sites and also provide shelter, food and cloths to those who have no access to any of these. Aims for Oxfam:
Oxfam have many contrasted aims that they wish to achieve and one of their main aims is to decrease the amount of poverty by organising a charity where all the people can donate and help the organisation. Oxfam have many aims where they want to give the opportunity to the entire poor youngster in Africa and other poor countries by creating school sites so they can be educated like all the other young people across the World. Oxfam have TV advertisements, poster advertisement and news advertise to persuading the public people to have a stake in the business by donating money to the organisation so they can help the poor people. Oxfam also aim to establish more branches across the country so they can sell small items which can go towards the cost of decreasing poverty.
Oxfam is an organisation which has high expectation. They have many objectives which they want to accomplish. One of Oxfam’s many objectives is to recruit employees who work as volunteers so the business does not have any necessary payment to pay to their employees. Oxfam have other objectives that they set to their business.
For example, training their employees to work hard and persuade the public people to donate money to the business by organising specials activities. Oxfam’s main objectives is to create small branches in the cities so it can attract the public people and show them that there are people out there who needs their help. Another key objective that Oxfam have is to raise money for poor people.
Oxfam is a huge organisation which is run by a board called the Board of Direct. This organisation is also linked to the government system so this means that the business has service level agreement which they need to pursue. Oxfam must pursue the service level agreement due to the fact that the government has a big role in the business and they will evidently want to see how the organisation is helping others so that they can decrease the level of poverty. All the employers who work for Oxfam must institute certain standards that are needed to be taken into account as it is really vital. Service provision: Oxfam is an organisation which is known all around the World.
Oxfam is a business which has to offer their stakeholders with a high standard service due to the fact that they have a high level of respect from the people who have an interest in the business. Service provision is actually an essential strategy for Oxfam for the reason that they need to persuade the public people to donate money so that they can help the people in needs. For example, free membership, a contact line which requires no charge etc. So this clearly signifies that there are no charges made to the people who have an interest in the business.
Oxfam is a large organisation who has high expectation. So this clearly demonstrates that quality assurance is a significant strategy used by Oxfam. Quality assurance refers to something or somebody performing on what is expected of them. This means that all the employees who work for Oxfam must perform what is expected of them. Oxfam’s quality assurance will be making sure that the donators will get a proof that their money is spent on good use. For example, Oxfam will send post card, letters to the donators showing the result on how their money helped the poor people’s lives.
Quality assurance is an important strategy for Oxfam due to the fact that it will reflect if the organisation is performing negatively or positively. M1 Explain the points of view from different stakeholders seeking to influence the strategic aims and objectives of your two contrasting organisation Oxfam Stakeholders: Government: Government is one of the important stakeholders for Oxfam since the organisation is based in their country. The government will force Oxfam into showing them all the evidence on how the organisation is helping the people in needs so the level of poverty can be decreased.
The government will want to distinguish how Oxfam fund raise by persuading the public people to donate money or any other items. The government will also want to observe Oxfam due to the fact that the government also helps the organisation on some of their payments, they would want to see if there is any improvements made in the organisation and also to the people in needs. The government will have aims and objectives on finding out how Oxfam is performing to help the people in needs.
They would want to help the organisation perform better by giving them a certain budget to spend on new technologies. People who donate: Oxfam have many stakeholders in their business and one of their stakeholders is known as people who donate. Firstly people who donate items or money to the business, they would want to know if Oxfam has a high level of service according to quality assurance. This can clearly show the donators if the business is reliable, professional or unprofessional etc. The donators would also want to see evidence on the item they donated is used for the right cause.
For example, Oxfam usually send postcards to their donators thanking them for donating money to help the people in needs and also they write information based on what their money is spent on. If Oxfam offer all these options to the people who have interest in the business, this will easily attract them without any doubts. The people who donate items to Oxfam will have aims and objectives on how they can change peoples lives and what can they offer to decrease the level of poverty. They would want to know if their donation is used for the right cause.
Most employees who work voluntarily for Oxfam are also stakeholders for the business. They usually work for Oxfam during their spare time to help the organisation decrease the level of poverty alongside gaining very important experience for future references. Most volunteers who work for Oxfam are usually a student from a university. All the employees at Oxfam must perform excellent service according to quality assurance. If the employees perform good service the customer will clearly see that the business has an expectation from their customers.
Volunteers must also try and persuade the public people politely to donate any items or money which can make a huge difference too many poor people’s lives. So this can show to others that Oxfam has a high level of service provision. The volunteers who work for Oxfam will have aims and objectives on how their skill can change other people’s live, find simple and honest ways on persuading people to donate items to the business and also gain important experience which can come into hand in the near future.
Local community: The local community are also the stakeholders of Oxfam due to the fact that they might have an interest in the business. For example, people from the local community will want to know what Oxfam is about and what they are specialised at. Some people from the local community would want to gain an experience by working voluntarily. The local community would have aims an objectives based on how they can help Oxfam succeed on decreasing the level of poverty, make fund raise for the organisation.
Customers are one of the main stakeholders for JD Sports due to the fact that they have interest in the business; they are fond of the products that are provided by JD Sports etc. The customers would also want to receive good customer service from the business to prove them that JD Sports is a professional and high standard business. Customers will also be interested in the business because they can find famous brand clothing and footwear for an acceptable price.
Most customers for JD Sport have aims and objective on what they can do to make the business successful, how they should communicate with the staffs of JD Sports when there is something wrong with item they have brought. Investors: The investors of JD Sports are the main stakeholder for the business. They are the people who will desire to see if the business is becoming successful or unsuccessful. They would want to see what item or product they should invest on so the get good return in capital. The reason that they are so keen on invest on particular products is because if the business is healthy they can make a lot of money from their shares and can also sell their share for a higher price.
They would also invest money on recruiting staffs that can perform an excellent service to the customers and increase the level of respect from the customers. The investors for JD Sports have many aims and objectives on increasing profit, making shore that the business is performing an acceptable service to the customers, provide high quality products and also invest money on products which will return in large amount of capital. Staffs: The staffs who work for JD Sports are also stakeholders of the business. They work extremely hard to be promoted in the near future, gain retail experience and help the business to become successful. The staffs must perform excellent customer service due to the fact that customers will be attractive to business who welcomes them into the business politely.
Majority of the staffs in JD Spots have an aim and objective to perform outstanding service to the customers, work hard to be promoted into a higher status of the business etc. Rivals: The rivals for JD Sports are also the stakeholders for the organisation. The rivals for JD Sports will want to know what JD offers to their customers. For example, Footlocker is one of the main rivals for JD Sports due to the fact that both businesses provide similar products to their customers. Footlocker would want to see what JD Sports offer to their customers, the type of quality products JD Sports offer to their customers and the prices set to majority of the products etc. The main point Footlockers would want to discover on JD Sports is how they promote their products and how their staffs perform the service to their customers.
The rivals for JD Sports would have many aims and objectives on how they can improve on their customer service according to JD Sports, what type of products they should offer to their customers, how they should treat their customers and how they should prove their customers that they can trust the business etc.
Conclusion
I have been given the task to investigate on a business of my choice, and explore the aims and objectives of these particular businesses. The businesses that I investigated on was called John David Sport (JD Sport) and Oxfam. I discovered that JD Sports main aim was to increase the level of profit due to the fact that they are a private sector organisation. And I also discovered that Oxfam’s main aim was to fund raise and help to decrease the level of poverty.
I have also discovered that both the organisation have many strategies amongst them so that their business becomes successful. I have discovered that JD Sports follow strategies such as profit maximisation, keeping ahead of competition etc. And besides Oxfam had different strategies they have different aims an objectives. Their trategies where service provision, service level agreement and quality assurance.
During my investigation I have realised that both organisations had one similar objectives and aims on putting their customer needs first. I believe that having aims and objectives in a organisation is really good due to the fact that the business will know what they are expected of and what their main targets are. They can also realise how they can achieve their aims and objectives.
Bibliography
- www. jdsport. co. uk
- www. oxfam. co. uk
- Dooley David, Dransfield Rob, Phillip Guy and Catherine Richards – Page 17-28.
