Aims and Objectives
Businesses have different aims and objectives that can change over time.
Different types of business aims and objectives
An aim or objective is a statement of what a business is trying to achieve over the next 12 months. For example, a business can set itself any of these targets:
- increased profit
- increasing market share
Having an objective is useful because it helps staff to focus on shared aims. A business could instruct its staff to work towards increasing sales by 10% by the end of the year.
Different organisations have different objectives. 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.
In most businesses, the owners decide on the objectives for the business.
When a business first starts trading it has few loyal customers and no reputation. The most likely objective for a start up business is simply survival. As the business grows and begins to win market share, the…