Business aims and objectives

• What do all businesses have that gives them direction and purpose?

  Aims and objectives
• What is the difference between a business aim and a business objective?

  A business aim is a long-term target, while business objectives are short-term steps to achieve that aim
• 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 for the next year
• What are the two main categories of business aims and objectives?

  • Financial aims and objectives
  • Non-financial aims and objectives
• What are financial aims and objectives linked to?

  • Money
  • Business survival
  • Profit maximization
  • Growth
  • Market share
  • Increasing shareholder value
• What is a common objective for a small business?

  Business survival
• What does business survival refer to?

  Keeping the business operating for a certain amount of time
• When does profit maximization become an aim for a business?


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

  Increasing the number of employees, products sold, or income from sales
• What is market share?

  The percentage of the market that a business occupies
• Why is increasing shareholder value important for a limited company?

  It keeps shareholders happy
• What are non-financial aims and objectives linked to?

  • Anything other than making money
  • Social and ethical objectives
  • Customer satisfaction
• What are social and ethical objectives related to?


  Doing things in an ethical or environmentally friendly manner
• What does customer satisfaction measure?


  How happy a customer is with the products or services provided
• Why is customer satisfaction a key objective for firms in a competitive market?

  It helps retain customers and improve sales
• Why do aims and objectives differ between businesses?

  Because businesses have different purposes, levels of competition, and operations vary in size and scale.
• What is the main focus of aims for a private sector business?


  Profit
• What type of objectives are not-for-profit organizations likely to focus on?


  Social or ethical objectives
• How does the size and scale of a business impact its aims and objectives?


  A new business may aim for survival, while an established business may aim for profit.
• What might small businesses aim for in terms of their objectives?

  Expanding as a business and increasing the scale of their operations.
• What do businesses set to help with decision making?

  Aims and objectives
• Why do businesses set aims and objectives?


  To decide what their main focus should be
• How does the level of competition in the market affect a business's aims and objectives?


  In a competitive market, businesses may focus on gaining competitive advantage and increasing market share.
• How do aims and objectives benefit key stakeholders?


  They show the direction the business is planning to take
• How might aims and objectives influence investor support for new projects?


  They could make investors more likely to support new projects
• In what way can aims and objectives motivate employees?

  By encouraging them to work harder to achieve the goals
• How do aims and objectives assist in measuring progress within a business?

  They allow the business to set targets
• What are the key benefits of setting aims and objectives in a business?

  • Helps with decision making
  • Defines the main focus of the business
  • Shows direction to stakeholders
  • Motivates employees
  • Sets targets for measuring progress
• What may a business without much competition focus on?

  Growth
• What are the main reasons that aims and objectives differ between businesses?

  • Different purposes
  • Different levels of competition
  • Variations in business operations size and scale
• What are the initial aims and objectives of a small business?

  Achieving break-even and survival
• How do the aims and objectives of a business change as it evolves?

  They may shift from survival and break-even to market dominance, international expansion, and increasing shareholder value
• What is a key external factor that can influence a business's aims and objectives?

  New government legislation
• How does new government legislation affect a business's profit objectives?

  It may require the business to adapt its profit objectives due to changes in costs
• What might a firm focus on during a recession?

  Survival rather than growth
• What is the focus of a business during a period of economic boom?

  Expansion might become the main focus
• What technological changes might influence a business's aims and objectives?

  New production methods, e-commerce, m-commerce, and new payment systems
• What is the purpose of setting objectives in a business?

  To review success after a certain period of time
• How can changes in environmental and ethical standards affect a business?

  Businesses may set environmental and ethical objectives to avoid losing customers