Aims and objectives

• What do business aims and objectives provide for a business?

  Direction and purpose
• What is the difference between a business aim and a business objective?

  Aim is long-term; objective is short-term
• What is an example of a business aim?

  To make £120,000 profit
• What is an example of a business objective?

  To make £10,000 profit each month
• What are the two main categories of business aims and objectives?

  • Financial
  • Non-financial
• What are the financial aims and objectives of a business?

  • Business survival
  • Profit maximisation
  • Growth
  • Market share
  • Increasing shareholder value
• What does business survival refer to?

  Keeping the business operating for a time
• When does profit maximisation become an aim for a business?

  Once it has reached its break-even point
• What does growth in a business refer to?

  Increasing employees, products, or income
• What is market share?

  Percentage of the market occupied by a business
• Why is increasing shareholder value important for a limited company?

  It keeps shareholders happy
• What are the non-financial aims and objectives of a business?

  • Social and ethical objectives
  • Customer satisfaction
• What are social and ethical objectives linked to?

  Doing things ethically or environmentally friendly
• What does customer satisfaction measure?

  How happy a customer is with products
• Why is customer satisfaction a key objective for firms?

  It is crucial in a competitive market
• What is the purpose of setting SMART objectives?

  To help focus on improving sales
• Why do aims and objectives differ between businesses?

  They are tailored to each business's purpose
• What is a primary focus of private sector businesses?

  Profit
• What type of objectives do not-for-profit organizations focus on?

  Social or ethical objectives
• How does business size impact aims and objectives?

  Smaller businesses focus on survival, larger on profit
• What might a new business primarily aim for?

  Survival
• What do established businesses typically aim for?

  Profit
• How does competition level affect business objectives?

  High competition focuses on gaining advantage
• What happens to a business's aims as it evolves?

  They may change to reflect growth and market position
• What is a common aim for small businesses?

  Achieving break-even and survival
• What external factor can impact a business's profit objectives?

  New government legislation
• How does the economy influence business objectives?

  Recession may shift focus to survival
• What technological changes might affect business objectives?

  Focus on new production methods and e-commerce
• Why might businesses set environmental objectives?

  To avoid losing customers concerned about impact
• How can businesses judge their success after setting objectives?

  By reviewing achievement against set objectives
• What is an example of a measurable objective?

  Increase market share by 5% within 12 months
• What are the various ways businesses can judge their success?

  • Number of employees
  • Customer satisfaction
  • Market share
  • Social media engagement
  • Revenue
  • Cost savings
  • Profit
  • Number of new stores opened
  • Share value
  • Environmental impact