Business Aims & Objectives (AQA GCSE Business)

What are Business Aims & Objectives?

• Business aims are the long-term goals or aspirations of an organisation

• Business objectives are the specific, measurable outcomes that businesses hope to achieve in a given time period

• Every successful business needs to have clear aims and objectives that guide its operations and focus the efforts of all employees towards the same goal 

  • Aims and objectives are critical for businesses to function effectively and achieve long-term success

  • E.g. A business's aim may be to become the market leader in a particular industry

    • Suitable objectives may include increasing sales by 25% over the next three years, improving customer satisfaction by 15%, and expanding into new geographic markets

Diagram: The link Between Aims and Objectives

Business objectives are derived from the overall business aim

• Objectives are most useful when they are SMART

  • Specific: it states precisely what is to be achieved

  • Measurable: the desired outcome is expressed in quantitative terms

  • Achievable: it is possible with the people and resources involved 

  • Realistic: it is possible within the set timeframe

  • Time specific: the timeframe or date by which the objective is to be achieved is clear

• An example of a SMART objective might be for a business to increase its sales revenue by 10% by the end of the year

The role of Business Aims & Objectives

• Aims and objectives allow managers to determine and communicate exactly what they want the business to achieve

  • Managers can set targets and goals for employees and workplace teams

    • Aims and objectives can act as motivators, as workers can understand the contribution of their hard work to business success

    • Employees may receive a financial reward for their progress towards meeting objectives

  • Investors and other interested stakeholders can understand the direction the business is choosing to pursue

    • This can help them decide whether to align themselves with the business

  • Priorities can be determined when making business decisions

    • Decisions that have a direct impact on the achievement of aims and objectives can be considered before others

The main Business Objectives

• Many businesses pursue one or more of a range of common business objectives

  • Many of these are financially-focused

    • Aims and objectives are centred on increasing revenue or profit, reducing costs, maximising shareholder value or ensuring survival

  • Businesses may also pursue non-financial aims and objectives

    • These may include fulfilling personal ambitions, making a positive contribution to society or improving employee welfare

Examples of Common Business Objectives