3.1a Aims & Objectives

Question 1

What is a business aim?

Answer 1

A business aim is what a business wants to achieve. This could be thought of as what a business’s goal or ambition is.

Question 2

What is a business objective?

Answer 2

A business objective is how a business will achieve it’s aim. Each objective will focus on a particular area of a business.

Question 3

What are the two main aims and objectives categories for start ups?

Answer 3

Financial

Non-Financial

Question 4

What are financial aims and objectives?

Answer 4

Survival, profit, sales, market share and financial security

Question 5

What are non-financial aims and objectives?

Answer 5

Social concerns, personal satisfaction, challenge, independence and control

Question 6

What is the main focus of startup businesses and how do they achieve this?

Answer 6

Survival- A business may achieve this by reaching a certain number of sales, securing a certain market share or making a specified amount of profit.

Question 7

What is a social objective?

Answer 7

Likely to be to reduce the carbon emissions of a business or improve the quality of life for a local community

Question 8

What are an entrepreneur’s personal objectives?

Answer 8

Personal satisfaction, challenge, independence, control

Question 9

Why do businesses have different aims and objectives ?

Answer 9

They have different ways of operating

Businesses are in different industries

Question 10

What is the ultimate goal of a business?

Answer 10

The ultimate goal of a business is to achieve it’s aims and objectives. This will allow the business to grow and move further possibly in new markets.

Question 11

What does profit mean?

Answer 11

The amount of revenue left over once costs have been deducted.

Question 12

What does market share mean?

Answer 12

The proportion of sales in a market that are taken by one business.

Question 13

Entrepreneurs often set up their own businesses because they want to achieve something. This may be linked to the entrepreneurs’ objectives. Which are?

Answer 13

Personal satisfaction- they have created a thriving business that people like to use.
Challenge- they have to make their 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 aim and objectives and can decide the direction that they want to take their business in.

Question 14

Why do businesses have different aims and objectives?

Answer 14

Different businesses will have their own way of operating, and this will be reflected in the aims and objectives of each business.

Question 15

When setting aims and objectives, what do you need to consider?

Answer 15

The entrepreneur needs to consider the industry in which their business operates, as this will have a massive influence on its aims and objectives.

Question 16

What do non financial aims and objectives depend on?

Answer 16

It will depend on the nature of the business and the sector which the business operates in.

Question 17

What is Pompy’s cycles business aim?

Answer 17

There business aim was to be a family run, supplying the local community and to attract tourists to the area.

Question 18

What do Pompy’s advertise?

Answer 18

They advertise cycling events, cycle groups and routes around the local area.

Question 19

What are the advantages of being an official dealer?

Answer 19

Attracts more customers
Ensures they get past their break even point.
Increase in revenues
Helps reach their objectives quicker

Question 20

What can keep employees focused on building the business success?

Answer 20

Challenging objectives can help to keep a business and its employees focused on building its success. These challenges should be relevant to the overall aims of the business.