1.4 Business Aims And Objectives

Question 1

Identify the three main objectives of most businesses:

Answer 1

•to survive
•to make profit
•to expand

Question 2

Why should a business set up objectives?

Answer 2

•so that all employees working towards a common goal giving them something to strive towards
•to help measure the success of a business at the end of the year
•so employees can be given targets and rewarded when they meet them (this motivates them)

Question 3

What would the objectives of a brand new shop in the city be include?

Answer 3

•survival- if new businesses fail to survive the first couple of years they may not make enough profit to cover costs and may lose investments

Question 4

What would the objectives of a medium sized business with 5 stores in the UK be?

Answer 4

•to make profit and expand- once the business has got past the survival stage it might look to make more profits and ways to expand

Question 5

What would the objectives of Apple include ?

Answer 5

•To maximise profits and achieve global domination- Businesses like amazon, Apple, Tesla etc. may use their growth to maximise profits and to become a household name in as many countries as possible