Aims

What is an aim?

the broad long tern goal of the company, this could be what they aim to achieve hive in the next 5 years

What are the main aims and objectives of a business?

survival

growth

profit maximisation

sales maximisation

increased shareholder value

corporate social responsibility, ethics and environment

Survival aims

this is when a business is just covering their costs but not making profits

approximately 30% of new businesses fail within 2 years

growth aims

next step after survival

business aims to become bigger so has to increase their market power

completely achieved by reinvesting profits to finance expansion

profit maximisation aims

owners seek a profitable return on their investment

one of the main objectives of business in the private sector

profit will motivate investors

sales maximisation aims

theoretical objective of a firm

involves selling as many units of a good or service as possible without making a loss

this means sacrificing some short term profit with a view to achieving a longer term goal

increased shareholder value aims

shareholders are keen to measure the amount of dividend that they get paid and any increases in the share price

the key objective for a business is to try and increase the share price on the stock market

this will improve investor confidence and help to secure management positions and other jobs

corporate social responsibility aims

one of the objectives of a business is to consider the impact upon society and to minimise their negative effects wherever possible

this can affect a firms profits

as they have to pat more o ensure workers are paid a fair wage, suppliers do not exploit their labour forces and resources are sustainably sourced