3.1.3 aims and objectives

Question 1

what is an aim

Answer 1

• An Aim is a general overall goal
• long term
• Stated in mission statements
• what drives the business
• Example expanding

Question 2

main aims

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Answer 2

• 1. Survive-this means keep the new business going and don’t let it die this is a vital short term aim for new businesses
• 2. Maximise profit- despite the fact it may take a few years to produce a profit ,after aim to increase profit
• 3. Expansion/growth this can have a lot of factors so it definitely means increase: the size or the profit ,number of employees ,or expanding nationally or even internationally
• 4. Achieve customer satisfaction: reputation, customer service- consumers should be pleased by the product they buy bd id they are this is fulfilled satisfaction could find this out by taking a customer opinion survey
• 5. Increase shareholder value-only limited companies can have shareholders to increase shareholder value you can increase the firm value by expanding or producing more profit
• 6. Social and ethical aims- these aims are to do more things that are best for society and what the majority agrees with also they may be cautious if any activities done don’t harm the environment if that could be easily avoided.
• 7. Market share: increase they want most of the customers and to do this businesses will try ang grow a bigger percentage of a markets total sales and then to get more customers take away other competitors shares to increase its shares .

Question 3

what is an objective

Answer 3

A specific target that turns the aim in something easier to measure and asses. Effective objective s should be SMART

Question 4

what are smart objectives

Answer 4

Question 5

Use of objectives in judging success

Answer 5

• A business will aim to be profitable
• targets could be set over time e.g. to increase profit by 3% per year in relation to competitors
• Customer satisfaction, digital marketing, customer surveys
• Size -expansion
• Competition
• Employee engagement
• Brand loyalty Awards
• Ethical reputation
• Environmental targets-low polution production,less of a carbon footprint
• Market share

Question 6

What factors affect the type of objective a business has

Answer 6

• Size
• level of competition
• type of business 👨‍💼

Question 7

Why does a business’ objectives change over time

Answer 7

• A start up objective may just be to survive but as that is completed it may move onto focusing to expand and maximise profit as the previous one isn’t relevant anymore

Question 8

What are the dynamic factors

Answer 8

• Legislation
• Economic changes
• Technology changes
• environmental impacts

Question 9

How can businesses mesure success with objectives?

Answer 9

• Profit =profit target
• employees number = growth
• Values of shares on the stock market=shareholders value