1.2 Setting Aims and Objectives

Question 1

What is the difference between an aim and a objective?

Answer 1

Aim - What a Business wants to achieve. The intention or a purpose of a business

Objective - Goal or target of a business. An outcome which allows a business to achieve its aims

Question 2

What are the possible aims of a business?

Answer 2

Profit 
Providing a Quality Product
Survival
Increase sales revenue and market share
To benefit the local community and environment
Being Ethical (Right and Wrong)
Customer Welfare/Satisfaction

Question 3

What does SMART stand for ?

Answer 3

Specific, Measurable, Agreed, Realistic, Time Specific

Question 4

Give the definition of ‘S’ in ‘SMART’

Answer 4

Specific - They must set out clearly what a business is attempting to achieve

Measurable - They must be capable of being measured so it can be judges whether or not it can be achieved

Agreed - Everyone responsible for achieving an objective must have agreed and understood what it meant

Realistic - The objective must be achievable from the resources given and is available and also the market conditions

Time Specific - The objective must specify over what period of time it is to be achieved