Business aims and objectives

Passing your examination!

In the written examination for this Unit, you will need to be able to demonstrate your knowledge and understanding of the following assessment criteria:

1.2.1 Financial aims and objectives

You will know and understand the financial aims and objectives that a business might have and be able to apply these in business, including:

  • Break even point
  • Profitability
  • Increasing revenue
  • Profit maximisation

1.2.2 Non-financial aims and objectives

You will know and understand the non-financial aims and objectives that a business might have and be able to apply these in business, including:

  • Customer satisfaction
  • Expansion
  • Employee engagement/satisfaction
  • Diversification
  • Ethical/corporate responsibility

You’ll find lots of useful information over the following pages to help you complete this part of your examination.

On the previous page, you learned about the different aims and objectives that motivate entrepreneurs to plan, build and grow businesses. Now let’s take a look at the wider aims and objectives that these businesses may have.

Every business will have aims and objectives – aims are the broad targets that the business is working towards; objectives are the specific steps needed in order to achieve the overall aim. Progress towards and achievement of these aims and objectives can help the business to measure its level of success and performance. Clear objectives are needed to succeed in any business. The term SMART is often used when setting objectives in business – this helps to ensure that objectives are:

  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Time-bound

Business objectives will vary depending on a number of factors, such as:

  • The size of the business
  • The nature of the business
  • The age of the business
  • Changes in the market
  • Competitor activity

For example, a large global company such as Apple will have very different aims and objectives to a small local hairdressing salon.

The aims and objectives of a business can often be summarised in a Mission Statement. Click through the slide panel below to take a look at a few examples.

  • Apple

    Apple’s current mission statement is:

    Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.

  • Nike

    The Nike mission statement is:

    To bring inspiration and innovation to every athlete in the world – if you have a body, you are an athlete.

  • Microsoft

    Microsoft’s mission statement is:

    To empower every person and every organisation on the planet to achieve more.