aims and objectives

Question 1

what is the difference between business aims and objectives

Answer 1

• aims: broad, long term goals a business wants to achieve (e.g. increases sales revenue)
• objectives: specific, measurable steps to achieve the aims (10% increase in sales within 12 months)

Question 2

what are common aims for a for-profit organisation?

Answer 2

• survival
• profit maximisation
• market share growth
• improve productivity and quality

Question 3

why are typical aims for a not-for-profit organisation

Answer 3

• provide essential services (healthcare, education)
• protect consumers from monopolies and exploitation
• help those in need (charities helping illness, poverty and disabilities)

Question 4

what is a vision statement

Answer 4

a vision statement describes what a business aspires to achieve long-term

Question 5

why is a vision statement useful for a business?

Answer 5

• gives a clear identity and direction
• helps set clear objectives
• motivates employees

Question 6

what is a mission statement?

Answer 6

a mission statement defines what a business sets out to achieve in the medium to long term

Question 7

why should a business have a mission statement?

Answer 7

• provides transparency for investors
• helps strategic planning by setting priorities
• improves customer trust by showing company goals
  e.g. Tesla’s mission to: accelerate the world’s transition to sustainable energy

Question 8

What does SMART stand for in business objectives?

Answer 8

• specific: clearly defined goals
• measurable: can track progress
• achievable: realistic with resources
• realistic: practical given market conditions
• time limited: includes a deadline

Question 9

Example of a SMART objective

Answer 9

increase sales by 15% within 6 months through online marketing

Question 10

difference between long-term and short-term business objectives

Answer 10

• long term objectives focus on business growth and sustainability e.g. invest in employee training, expand new markets
• short term objectives focus on immediate profitability and efficiency e.g. cut staff costs, set high prices

Question 11

how can a business assess whether its aims and objectives are successful?

Answer 11

• financial performance (profit, revenue growth)
• customer feedback (satisfaction surveys, reviews)
• employee engagement (turnover rates, absenteeism)

Question 12

how do vision statements, mission statements, aims and objectives connect?

Answer 12

1. Vision statement: defines the company’s ultimate goal
2. Mission statement: outlines the strategic approach
3. Aims: set broad targets
4. Objectives: provide specific measurable steps