1.3 Aims And Objectives

Question 1

Why do businesses set objectives

Answer 1

Objectives give a business direction. Over time we achieve things and the world changes around us, so objectives change over time

Question 2

Survival

Answer 2

For the business to avoid going bust. Around 60% of businesses close within five years of starting.

Question 3

Profit Maximisation

Answer 3

To achieve the most profit possible - may take a few years to achive any profit at all.

Question 4

Growth

Answer 4

Getting bigger / expansion through internal or external growth. Some businesses will want to grow domestically (in the county where they set up). Other want to grow internationally

Question 5

Market Share

Answer 5

The % of a product sold in the UK sold by a single business

Question 6

Social/Ethical

Answer 6

To meet or exceed customer expectations related to the environment / treatment of staff or other issues

Question 7

Customer Satisfaction

Answer 7

How pleased a customer is with the product or service received

Question 8

Shareholder Value

Answer 8

Improving performance of the business to raise the share price or the amount of profit that can be shared as dividends

Question 9

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