BusinessStudies.net - GCSE Revision for AQA Business Studies

1.3 Setting Business Aims and Objectives

Aims vs Objectives

Aims

  • The overall purpose or direction of the organisation
  • Broad, long-term goals focussed on outcomes

Example: A football club’s aim might be to win the league

Objectives

  • Shorter-term targets that the organisation sets to achieve its aims
  • Specific, measurable, achievable, relevant, and time-bound (SMART) targets

Example: A football club’s objectives might be how they win the league, such as winning the next seven matches, gaining a specific number of points, and improving player’s penalty-taking training

Understanding Business Aims

The aims of a business will depend on what it wants to achieve. This will vary between businesses. Common aims are:

Business survival illustration
Business expansion illustration
Improve Customer Satisfaction
Maximising profits illustration
Increasing market share illustration
Improving ethics illustration
Increasing shareholder value illustration

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Survival

Business Expansion

Improve Customer Satisfaction

Maximise Profit

Increase Market Share

Improve Social & Ethical Behaviour

Increase Shareholder Value

Business Objectives

Business objectives, which are shorter-term targets to help a business achieve its aims, should be:

SMART

SMART is an acronym you will hear a lot. It stands for:

Target illustration

Specific

A single, clear, focussed goal

Measuring tap illustration

Measurable

A clear definition of success

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Attainable

Challenging, but possible to achieve

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Relevant

Aligned to the business needs

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Time-bound

A defined, achievable deadline