1.3 Aims and objectives

Question 1

Business objectives

Answer 1

• Survival
• Profit maximisation
• Organic or international growth
• Maximising market share
• Increasing shareholder value
• Customer satisfaction
• Social and ethical objectives

Question 2

Factors that affect a business’ objectives.

Answer 2

• Business size: smaller businesses may focus on survival or organic growth, larger businesses may focus on increasing market share.
• Competition faced: high competition may lead to more focus on increasing customer satisfaction and market share.
• Business type: not-for-profit organisations focus on social and ethical objectives rather than profit.

Question 3

Reasons why business objectives may evolve.

Answer 3

• May have become dominant business.
• May want to expand internationally.
• May want to pursue shareholder value.
• May have to adapt to ethical/environmental considerations.