5. Business Aims and Objectives

• Describe the business aim survival

  This is when the business may need to conserve finance and concentrate on breaking even. This would serve as a short term strategy to allow the business to remain existent in the long term

  In the initial stages of trading survival would be the most important objective due to these factors. A lack of experience, A lack of resources, Competition from established firms , Unforeseen problems such as unexpected costs , Limited recognition by customers
• Describe the business aim profit maximisation

  Many businesses, particularly in the private sector, may have tarted with the long term vision of profit maximisation in mind. This objective is usually favoured by employees whose salaries are linked to sales
• Describe the business aim growth

  This is one of the objectives for firms who wish to be leaders in the market sector. It can be measured in various ways including sales quantities, revenues, profit levels and market share. In order to grow a business might; Open new branches, Extend the market sector, Extend existing premises or Expand the workforce. Growing allows a business to become more dominant within the market to enhance its reputation, increase customers and hence sales
• Describe the business aim good corporate image

  Many businesses feel it is important to try and portray themselves in a positive manner to the public. For this reason, an organisation might sponsor a local sports team or donate money to charity. These actions are likely to draw positive publicity regarding the organisation and could persuade buyers to make use of the business thus increasing sales, market share and profit levels.
• Describe the business aim concern for the environment.

  This may be pursued by a business as they recognise that many customers are interested in this and are more likely to make use of businesses with which they have had an affiliation. There are, however, additional benefits that the business may be able to experience. For example, reducing packaging and encouraging reuse could cut down on costs.
• Describe the business aim social responsibility.

  Some businesses aim to be socially responsible ie work to provide as much employment within an area as possible or sponsor a local sports team. They might provide support to schools or support local charities.
• How the aims of a business may be in conflict

  On occasions a business may find that its aims may be in conflict with one another. Keeping one aim may sometimes cause tension between the stakeholders or even another aim, for example;

  Shareholders are most interested in profit improvement and may be unhappy about some of the profits being given to worthy causes, would allow the business to meet the aim of social responsibility

  Managers may aim to expand the business premises which would mean a reduction in profit in the short term. Shareholders may see this as temporary loss of profit.
• Analyse why aims and objectives are helpful for a business

  Having aims is helpful for a business because they define what a business is and what it aspires to be. It also provides targets for a business to achieve
• Analyse the ethical issues associated with business aims

  While businesses want to make a profit they also aim to deal fairly and honestly

  Environmental issues such as reducing reusing and recycling

  Employee working conditions such as fair wages and good working conditions

  Equality as they should treat all customers and workers equally and view everyone without discrimination

  Social responsibility such as refusing to trade goods made in countries where workers are exploited or products are tested on animals