Aims and Objectives

Question 1

Business Aims

Answer 1

Business aims are what the business wants to achieve in
the future, and they tend to be quite generic and broad.
They set out the goals for the business.

Question 2

Aims for profit-led organisations

Answer 2

Profit maximisation
Sales maximisation
Growth/increase market share
survival

Question 3

Aims for non-profit led organisations

Answer 3

To provide services
To avoid wasteful duplication of resources where a
natural monopoly exists, such as litter collection and
beach cleaning
To control strategic industries
To prevent exploitation by monopoly suppliers

Question 4

Business Objectives

Answer 4

Business objectives are more specific and measurable
targets the business will set to achieve its aims. A business
may aim to increase sales revenue and will set sales targets
(objectives) in order to achieve the aim.

Question 5

SMART Objectives

Answer 5

Specific - objectives should specify what the business
wants to achieve. They should be clear so that all
stakeholders understand what the objective is.
Measurable - objectives should be measured to make sure
the objective has been achieved. This measurement should
be numeric.
Achievable - are the objectives achievable and attainable?
There is no point in setting an unrealistic target, this can be
demotivating.
Realistic - is the business likely to achieve the objectives
with the resources available?
Time limited or constrained - a time-scale needs to be set
for achieving the objectives.

Question 6

Long-Term Objectives

Answer 6

Invest in training their staff
Building up their brands
Expanding into new markets
Putting money into developing new products

Question 7

Short-Term Objectives

Answer 7

Make staff redundant
Change to cheaper suppliers
Increase productivity at the expense of quality
Set a high price for maximum immediate profit
Sell assets

Question 8

Vision Statements

Answer 8

It is a description of what a business sets out to
achieve in the medium to long term. The vision statement
should provide a clear guide to senior management of the
future direction of the business and help to direct strategic
decision-making across the business.

Question 9

Benefits of a Vision Statement

Answer 9

A clear vision can give the business a clear identity and
ethos.
Can help in setting objectives and support the business
strategy.
Focus senior managers on the tasks to achieve the
vision.
Communicates to employees how they can contribute,
and can improve employee engagement.
Commits resources to achieving the vision.

Question 10

Mission Statements

Answer 10

A mission statement is where a company will outline it’s purpose for existing. It will express the companies belief and culture in a concise statement.

Question 11

Benefits of a Mission Statement

Answer 11

Helps to ensure that all stakeholders are clear on the
purpose of the business so everyone can be focused on
the same goals and objectives.
Helps with the strategic planning since this should be
the starting point.
Gives some transparency for investors – they
understand how their capital will be used.
Helps customers understand the ethics and objectives
of a company.