1.3 Businesses aims and ideas Flashcards
What does ‘aims’ means in terms of business?
A business aim is what a business wants to achieve. Like a goal or ambition.
What does ‘objective’ mean?
A business objective is how the business will achieve its aim. Each objective will focus on a particular area and must be linked to measures like targets so that an entrepreneur can come back and see their progress in achieving their goal.
What is the ultimate goal of a business?
To meet its aims and objectives and it is important that the business can set new aims and objectives in order to continue to improve and grow.
What two categories can aims and objectives be split up into?
Financial- such as survival, profit, sales, market share.
Non-financial- such as social concerns, personal satisfaction, challenge and independence.
What may all start up business have a an initial financial aim?
A business may have an aim to reach a certain number of sales, securing a certain market share or making a specified amount of profit.
Provide an example of a business having financial aims and objectives.
A cycle shop may set an aim as making a certain number of sales every month.
The objective to do this is to attract customers perhaps by increasing brand awareness.
This then means that the cycle shop makes enough sales each month to meet its financial objective.
This also helps the business to meet its objectives to survive.
What type of business is likely to have non-financial aims and objectives?
Business that focus on social and environmental factors.
For example a business that sells organic or Fairtrade products may set a social objective as a way of measuring progress towards achieving its aim.
What 4 main objectives can be linked to entrepreneurs on the reason they start up their business?
Personal satisfaction- they have created a thriving business of people like to use.
Challenge- they have to make the business work.
Independence- they have to make their own business decisions rather than working for someone else.
Control- they get to set the business’s aims and objectives and can des die the direction in which to take the business.
