Setting Business Aims and Objectives

• What do businesses set to guide their activities?

  Aims and objectives
• Why do businesses regularly review their aims?

  To reflect growth and market changes
• What are business aims?

  Broad, long-term goals
• What are business objectives?

  Specific, measurable targets
• How do business objectives contribute to aims?

  They help achieve broader aims
• What are the essential purposes of setting objectives in business?

  • Provide clear performance targets
  • Help employees understand priorities
  • Enable effective resource allocation
  • Support performance evaluation
• What is a common aim for new or struggling businesses?

  Survival
• What does profit maximization involve?

  Increasing profits by improving efficiency
• What is a typical aim related to market share?

  Increasing portion of total sales
• Why is customer satisfaction important for businesses?

  It leads to repeat business and loyalty
• What do some businesses prioritize as social and ethical objectives?

  Environmental sustainability
• What is the aim of public companies regarding shareholder value?

  Increase dividends and share prices
• How do objectives help in business operations?

  • Coordinate efforts across departments
  • Improve efficiency and production
  • Set hiring and training goals
  • Support sales and brand awareness
  • Maintain positive cash flow
• What factors influence the evolution of business objectives?

  Growth, competition, and economic conditions
• How might a new coffee shop's objectives change over time?

  From survival to market expansion
• How do objectives differ across various types of businesses?

  • Start-Ups: Focus on survival and profit
  • Large Corporations: Complex objectives like CSR
  • Not-for-Profit: Aim for social or environmental benefits
• What is a common measure of business success?

  Profit
• Besides profit, what are other measures of success?

  Customer satisfaction and market share growth
• What are key performance indicators (KPIs) used for?

  To track progress in specific areas
• What are the overall benefits of setting clear business aims and objectives?

  • Guide decision-making
  • Evaluate success
  • Stay focused on priorities
  • Allocate resources effectively
  • Adapt to environmental changes