Setting Business Aims and Objectives

• aim

  -the intention to reach a goal

  -long-term
• objective

  -a specific statement that defines a precise goal that can be measured and delivered within a given time

  -short-term
• financial aims and objectives

  - business survival

  - profit maximisation (once reached break-even point)

  - growth

  - market share

  - increasing shareholder value
• non-financial aims and objectives

  - social and ethical objectives

  - customer satisfaction
• purpose of setting objectives:

  -motivate employees

  -understand main focus

  -shows direction the business is planning to take

  -measure progress
• SMART

  specific

  measurable

  agreed

  realistic

  time-bound
• aims and objectives difference reasons:

  -business type

  -business size and scale

  -level of competition in the market
• aims and objectives changes reasons:

  -new government legislation

  -changes in the economy

  -changes in technology

  -changes in environmental and ethical standards
• aims and objectives success judgement:

  -number of employees

  -customer satisfaction

  -market share

  -social media engagement

  -revenue

  -cost savings

  -profit

  -number of new stores opened

  -share value

  -environmental impact