aims and objectives

• What is the difference between a business aim and a business objective

An aim is an overall goal a business wants to achieve while an objective is a measurable step taken to reach that aim

Name 7 business aims

Survival , growth, profit maximisation, increase shareholder value , increase market share, socially and ethically correct , customer satisfaction

• Why is survival a critical short-term aim for new businesses

Around 60% of new businesses close within their first five years of starting

• What does growth as a business aim involve

Increasing the number of employees products sold or income from sales either domestically or internationally

• How do limited companies aim to increase shareholder value

By making more profit or growing the firm to make the value of the shares increase

• What is market share

The percentage of a market's total sales that a particular product or company has made

• How can a business measure customer satisfaction

By carrying out customer opinion surveys which is a type of market research

• What are two examples of ethical or social aims

Avoiding testing cosmetics on animals and ensuring activities do not cause unnecessary harm to the environment

• Why do small local businesses often focus heavily on customer satisfaction as an objective

They depend on word of mouth to survive

• Why might a large business prioritize ethical objectives more than a small business

They get more public attention and want to avoid bad publicity

• How do objectives typically change as a new business becomes stable

The focus shifts from survival to growth and maximizing profits for reinvestment

• What are four dynamic environmental factors that can force a company to change its objectives

New legislation changes in the economy changes in technology and environmental expectations

• What is an example of an economic change putting growth objectives on hold

A recession which forces a company to concentrate on survival instead

• How do businesses use their objectives once a period of time has passed

They check back to see whether those objectives have been achieved to measure their success