aims and objectives

Aims

What the business wants to achieve in the long term- set pit the goals for the business. Tend to be generic and broad

Objectives

More specific and measurable targets the business will set to achieve its aims. Tend to be more short term

Business aims

Profit maximisation

Increase market share

Growth

Survival

Customer satisfaction

Ethical and environmental

Profit maximisation

When a business aims to make the highest possible profit

Increase market share

Percentage of the total sales in a market acconted for by one business

Growth

Expansion pf a business in terms of sales, output, customers, or employees

Survival

Staying in business, especially in the early stages or during economic downturn

Market share

Proportion of sales made by a business in relation to the whole market

Business objectives

Specific

Measurable

Agreed

Realistic

Timely

Specific

What the business wants to achieve. They should be clear so that all stakeholders understand what the objective is

Measurable

Objectives should be measured (in numeric terms) to make sure the objective can be achieved

Agreed

Attainable and achievable, agreed by all those concerned in tryimg to achieve the objective

Realistic

Is the business likely to achieve the objectives with the resources available?

Timely

A timescale needs to be set for achieving the objective

Why use samrt objectives?

• to provide clarity, focus, and motivation needed by businesses to achieve their goals

• Help focus attention and gain commitment from employees- encourage teamwork

• Direct resources to where they are needed most

• Enable feedback and learning- monitor achievement and make changes where necessary