Business aims and objectives
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Para educadores: diapositivas de la lección, apuntes de repaso listos para usar sobre Business aims and objectives (Business Studies, Business in the Real World) — úsalos en tu lección, o presenta el tema como una actividad interactiva de clase que tus aprendices juegan como un juego en vivo.
Apuntes de la lección
Aims and objectives
- An aim is a broad desired direction or purpose, often longer term. An objective is a more specific target supporting it. Aims can include survival in the near term, so a fixed duration is not the sole distinction. Objectives help coordinate decisions and judge progress.
- One common SMART version is specific, measurable, achievable, realistic and time-bound; another uses relevant for R. Use the convention taught for the task and test the underlying criteria. A precise target can still be unrealistic or encourage the wrong behaviour.
Test a fictional orders objective
Common aims
- Businesses may seek survival, profit, growth, sales, market share, financial security or shareholder value. Non-financial motives can include independence, control, personal satisfaction, challenge, customer satisfaction and social or ethical purposes. Priorities differ between owners and organisations.
- An environmental target should identify the impact, boundary, baseline and timescale. A social purpose does not mean that cash or financial viability can be ignored. Growth, profit, cash and market share are different measures and need not improve together.
Aims can have different purposes
Changing objectives
- Objectives can change with performance, resources, the market, competition, technology, economic conditions or ownership. A start-up may prioritise survival, while an established firm may expand or may return to a survival focus during difficulty.
- Review progress and assumptions rather than treating a target as permanent. In the fictional orders target, moving from 1,000 to 1,100 per month by December means 10% growth, but capacity and demand evidence are needed to assess whether it is achievable.
Stakeholders
- Stakeholders have a relevant interest in, can influence, or can be affected by business activity. Common groups include owners, managers, employees, customers, suppliers, lenders, government and local communities. Shareholders are a particular ownership group, not every stakeholder.
- Typical interests include employee pay and security, customer value and reliability, supplier orders and agreed payment, lender repayment and community impacts. Individuals within a group can disagree, and one person may hold several roles. Treat these as plausible interests to test against a case.
Typical stakeholder interests
Conflicts
- A decision can create a trade-off: higher pay may raise costs and reduce short-term profit if sales, productivity and other costs stay unchanged. Price cuts may benefit customers but lower contribution per sale at unchanged unit costs. Explain the mechanism rather than assuming any two groups must conflict.
- Improved productivity, retention or sales may offset costs, while survival and reliable service can be shared interests. Consultation, negotiation and alternative options can manage disagreement, although not every preference can always be fully met.
A pay decision can create a trade-off
Measuring success
- Match the measure to the objective: use profit for a profit target, consistent sales for a sales target, and a defined market for market share. Fictional value market share = £60,000 ÷ £400,000 × 100 = 15% for the same period. It does not by itself establish profitability.
- Customer survey results need sample and question checks; staff turnover needs a defined period and interpretation; social or environmental targets need meaningful outcomes and baselines. Financial viability and relevant non-financial evidence together support a judgement about success.
Choose evidence that fits the objective
Diapositivas
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Preguntas de práctica
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1.What is a business aim?
Easy- Aa broad desired direction or purpose
- Ba daily task
- Ca tax
- Da wage
2.What is an objective?
Easy- Aa vague wish
- Ba tax
- Ca wage
- Da more specific target supporting an aim
3.What is profit?
Easy- Acosts only
- Bwages
- Crevenue minus costs
- Drevenue plus costs
4.What is market share?
Easy- Aits wages
- Ba firm's percentage of total market sales
- Cits profit
- Dits costs
5.What is growth as an aim?
Easy- Aincreasing the size of the business
- Bclosing the business
- Ccutting sales
- Dreducing staff only
6.What is survival as an aim?
Easy- Aclosing
- Bmerging
- Cselling shares
- Dstaying in business
7.What is a social objective?
Easy- Aavoiding customers
- Bcutting wages
- Chelping society or the community
- Dmaximising profit only
8.Which group has a direct employee-role interest in pay and job security?
Easy- Alenders
- Bemployees
- Ccustomers
- Dcompetitors
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