Business Aims

• What is an aim in business?

  An ultimate purpose in business
• What is an objective in business?

  A goal sought to achieve an aim
• What are some main business aims and objectives?

  • Growth objective
  • Profit maximisation aim
  • Increase market share objective
  • Survival aim
  • Maximise shareholder value objective
  • Social and ethical objectives
  • Customer satisfaction
• What does a growth objective entail for firms?

  It involves increasing sales, customers, or employees
• How can companies achieve growth?

  By expanding internationally or introducing products
• What is the main aim for most for-profit businesses?

  Maximising profits
• Why might some businesses sacrifice short-term profits?

  To maximise profits in the long term
• What is market share?

  The percentage of sales a company makes
• Why is increasing market share important for new companies?

  They start with a 0% market share
• How can a company gain market share?

  By attracting customers from competitors
• What is a significant survival statistic for new businesses in the UK?

  More than half don't survive beyond 5 years
• What is the ultimate purpose of maximising shareholder value?

  To increase value for shareholders
• How do shareholders benefit from a company's performance?

  Through profits and selling shares
• What can maximise shareholder value?

  Maximising profits or growing the business
• What do social and ethical objectives focus on?

  Minimising negative societal or environmental impact
• How do firms often achieve social and ethical objectives?

  By using renewable energy and funding projects
• What does customer satisfaction measure?

  How happy customers are with products
• Why is customer satisfaction a key objective?

  It affects both short-term and long-term profits
• What happens if customers are not satisfied?

  They won't buy the product again