UNIT 1 - Business in the real world - Unit 1.3 - Business Aims and Objectives

Unit 1.3 - Business Aims and Objectives

1.3.10 - Aims and Objectives

Aims and Objectives

• An aim is a general goal of a business.

• An objective is a specific target that is set for a business to achieve.

Examples:

• Aim to grow the business.

• The objective is to grow by 20% within 3 years.

Aims and Objectives

• Provides a focus point.

• Can look back and assess if it was achieved.

• You can have more than one objective.

Example:

• Entrepreneurs

- provide a good service.

           - Earn enough money.

           - Spare time for family.

Purpose?

• Clear about what they want to achieve.

• Helps decision making.

• Helps investors understand where the business is going.

• Therefore, may help raise finance.

• Provides target to compare with actual results.

• Can motivate - everyone knows what to aim for.

1.3.11 - The Role Of Objectives

Survival

• Important during set up as many new firms fail.

• Startup is risky so important in the short term.

• Also when the economy is performing badly.

• Firms might lower prices to attract customers.

Profit

• Long term objective of most firms.

• Sales are greater than…