Business Aims & Objectives

• A business will use its mission statement to create corporate aims which are the long-term goals of the entire business.
• These corporate aims will allow the business to work towards its overall mission.

• Corporate aims are stated. Then, corporate objectives that contain the specific tasks and activities a business must accomplish in order to satisfy its corporate aims are written down.
• Corporate objectives can be broken down further into functional (departmental), team and individual objectives.

When setting objectives, a business should apply the SMART acronym:

• Objectives must be Specific so that employees know exactly what they are working towards.
• Objectives must be Measurable so that employees can actually work out whether they have met their objective.
• Objectives must be Attainable or achievable so that employees are committed to achieving them.
• Objectives must be Realistic otherwise employees may feel demotivated and overwhelmed.
• Objectives must be Timely so that employees know when they must achieve them by.

• Profit maximisation is a business objective that requires a business (and its management) to achieve the highest amount of profit for shareholders.
• Satisficing would mean making enough or some minimum required level of profits.

• Survival is a business objective which requires a business to continue trading despite challenges in the external environment.

• Growth is a business objective which requires the growth of stores or locations, sales value, sales volume or product range.

• Social, ethical and environmental objectives require a business to focus on supporting society through initiatives including sustainability and fair trade.

• Business objectives provide direction and can support planning and operations.
• Business objectives allow a business to co-ordinate resources and ensure that all employees are working towards the same overall aim.