Business aims and objectives- topic 1.3

• An aim is a general goal of a business
• An objective is a specific target that is set for a business to achieve
• Purpose of setting objectives: it can motivate people involved in the business, it is a way of measuring success, It helps with decision making
• Survival is a business objective which requires the business to be able to continue trading.
• Profit maximisation is the goal of a business, where the business aims to maximise its profits.
• Shareholder value is the financial benefits received by a companies shareholders and can take the form of rising prices.
• Customer satisfaction is the extent to which customers are pleased with the products they have bought and whether they repeat the purchase.
• The market share measures the sales of one product or business as a percentage of the total market sales.
• Ethical objectives are targets set by a business to help it to ensure that its decisions are morally correct
• An example of ethical objectives are treating all the staff fairly.
• equation for market share is : market share = sales of product/ total market sales x 100
• Private sector organisations are owned by individuals.
• Public sector organizations are owned by the government.
• Business objectives provide a point of focus, helping businesses to make decisions about what to do and to review how things are going .
• The main aim of most private sector businesses is to maximise profit.
• Objectives are short term targets which need to be achieved within one year or less.
• Aims are long term goals which give direction to an organisation's activities over several years or decades.
• Aims are long term goals that may take several years to achieve.
• Market share is the percentage of the total market sales achieved by one particular company.
• Profit = total revenue – total costs