UB3 : Objectives

Question 1

Why do different Organisations have different Aims and Objectives?

Answer 1

Some businesses are run to make as much profit as possible for owners. However, not all businesses aim to make profit. Voluntary organisations such as charities are more concerned with providing a service to others.

Question 2

Why may aims and objectives change?

Answer 2

The aim of a business can change over time. This can happen in response to internal factors, such as business growth, or in response to external factors, such as an economic recession.

Question 3

Name the Main Objectives

Answer 3

• corporate social responsibility
• growth
• satisficing
• managerial objectives

Question 4

Corporate Social Responsibility

Answer 4

When a company aims to act ethically and responsibly to ensure the public perceive them in a positive light.

Question 5

Growth

Answer 5

Most businesses within the private sector will aim to grow. In order to survive in a competitive market a business must change and develop over time to keep up with market demand. The larger a business becomes, the more opportunities become available for profit and increased economies of scale. Larger companies are at less risk of being taken over by competitors.

Question 6

Satisficing

Answer 6

A company who aims to satisfice will only look to be just good enough to achieve their own objectives. They do not aim to be the best possible but to do the best they can to satisfy stakeholders such as shareholders and customers. This may be due to external pressures such as low economic growth or internal factors such as a lack of finance.

Question 7

Managerial Objectives

Answer 7

Managers within a business often have their own objectives which may conflict with or support the main objectives of an organisation.
Working within a budget – managers will be given a set budget to which they have to adhere which may prevent them from meeting some of the objectives of the organisation.
Increased salary or position – a manager may be aiming for a promotion which may help them meet the main objectives of an organisation. Managers may aim to maximise sales to ensure they gain an increase in salary.