Business Aims and Objectives

What is an aim?

The long term objective of the business

What does SMART stand for?

Specific

Measurable

Agreed

Realistic

Timebased

What is an objective?

A short or medium term target of a business needed to reach its aim.

(E.G. increase sales by 20% in the next 5 years)

Give 3 examples of aims got profit organisations

• Survival

• Profit maximisation

• Increase sales revenue

• Increase market share

• Growth / expansion

• Improve reputation / increase brand awareness

• Improve quality / satisfy customers

• Environmental / ethical aims

• Provide jobs

Give 3 examples of aims for not-for profit organisations

• To serve the community

• Provide jobs

• To provide services

• To avoid wasteful duplication of resources where a natural monopoly exists, such as rubbish collection and beach cleaning.

• To control strategic industries.

• To prevent exploitation by monopoly suppliers.

• To help people in need

Give 2 reasons why some businesses decide to remain small.

• Owners are content

• Can survive on a low cost structure

• Some niche markets have no scope for growth

• Services delivered better on a small scale

• Consumers may prefer to buy from small businesses

• They can adapt quicker than large businesses

What are some External Stakeholders?

• Suppliers

• Society

• Government

• Creditors

• Shareholders

• Customers

What are some internal stakeholders?

• Employees

• Managers

• Owners

What are stakeholders?

Individuals and organisations who are affected by the decisions and actions of a particular business