In the written examination for this Unit, you will need to be able to demonstrate your knowledge and understanding of the following assessment criteria:
You will know and understand the financial aims and objectives that a business might have and be able to apply these in business, including:
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:
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:
Business objectives will vary depending on a number of factors, such as:
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.