Business Aims & Objectives

• What do mission statements set out for a business?

  Beliefs and values
• How does a business use its mission statement?

  To create corporate aims
• What are corporate aims?

  Long-term goals of the entire business
• What do corporate aims allow a business to do?

  Work towards its overall mission
• What follows corporate aims in the business planning process?

  Corporate objectives
• What do corporate objectives contain?

  Specific tasks and activities
• How can corporate objectives be further broken down?

  Into functional, team, and individual objectives
• What is the relationship between mission statements, corporate aims, and corporate objectives?

  • Mission statement defines beliefs and values
  • Corporate aims are long-term goals derived from the mission
  • Corporate objectives are specific tasks to achieve aims
• Why are business objectives needed?

  To achieve corporate aims and fulfill the mission
• What does the acronym SMART stand for in setting objectives?

  Specific, Measurable, Agreed, Realistic, Timely
• Why must objectives be Specific?

  So employees know what to work towards
• Why must objectives be Measurable?

  To determine if they've been met
• Why must objectives be Agreed?

  To ensure employee commitment
• Why must objectives be Realistic?

  To prevent employee demotivation
• Why must objectives be Timely?

  To provide a deadline for achievement
• What is profit maximisation?

  Achieving the highest profit for shareholders
• What does satisficing mean in a business context?

  Making enough profit to meet minimum requirements
• What is the survival objective for a business?

  To continue trading despite challenges
• What does the growth objective require from a business?

  Expansion of stores or locations
• What do social objectives focus on?

  Supporting society through sustainability initiatives
• What are the benefits of setting business objectives?

  Provide direction and support planning
• How do business objectives help coordinate resources?

  Ensure all employees work towards the same aim