1.2.4

Business Aims

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Main Business Aims and Objectives

An aim is an ultimate purpose. An objective is a goal that is sought in order to achieve an aim. Some main business aims and objectives are:

Illustrative background for Survival aimIllustrative background for Survival aim ?? "content

Survival aim

  • More than half of new businesses in the UK don’t survive beyond 5 years.
  • Survival is therefore one of the biggest short-term aims for new businesses.
Illustrative background for Profit maximisation aimIllustrative background for Profit maximisation aim ?? "content

Profit maximisation aim

  • For most for-profit businesses, maximising profits is their main aim.
  • Some businesses may sacrifice short term profits in order to maximise profits in the long term.
Illustrative background for Growth objectiveIllustrative background for Growth objective ?? "content

Growth objective

  • For lots of firms, one of their key objectives is to grow.
  • Growth can mean lots of different things - firms can grow sales, grow the number of customers or grow the number of employees.
  • Companies may also look to expand internationally as well as expanding by introducing different products.
  • Dyson, for example, started the business by producing vacuum cleaners and have recently expanded into the market for hairdryers and electric cars.
Illustrative background for Increase market share objectiveIllustrative background for Increase market share objective ?? "content

Increase market share objective

  • Market share is the percentage of sales that a company makes relative to all the sales made in that market.
  • New companies start with a 0% market share, so increasing market share is an important goal for them.
  • Gaining market share involves stealing or taking customers from competitors or getting new customers to enter the market.

Main Business Aims

An aim is an ultimate purpose. An objective is a goal that is sought in order to achieve an aim.

Illustrative background for Maximise shareholder value objectiveIllustrative background for Maximise shareholder value objective ?? "content

Maximise shareholder value objective

  • For limited companies (both private and public), maximising value for their shareholders is a key objective.
  • Shareholders get value from a share of a company’s profits, but also by selling the shares in the future.
  • The overall value of a business (how much they could sell it for) increases depending on how well the business is doing. So, maximising profits or growing the business can maximise shareholder value.
Illustrative background for Social and ethical objectivesIllustrative background for Social and ethical objectives ?? "content

Social and ethical objectives

  • Some firms make sure that they do business without having a negative effect on society or the environment.
  • Often this means firms using renewable energy sources and funding projects aimed at benefiting society.
    • For example, Jaguar Land Rover uses recyclable materials in its production of cars.
    • For not-for-profit firms, especially charities, this is usually the main goal of the company.
Illustrative background for Customer satisfactionIllustrative background for Customer satisfaction ?? "content

Customer satisfaction

  • This objective measures how happy the customers are with the good or service they are receiving from a company.
  • It can be a key objective because it has a large effect on both short-term and long-term profits.
  • If customers are not satisfied they won’t buy the product again and might instead buy competitors’ products.

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1Exploring Business

1.1Features of Business Organisations

1.1.1Sole Traders & Partnerships

1.1.2Private & Public Limited Companies

1.1.3Types of Liability & Not-For-Profits

1.1.4Purposes of Businesses

1.1.5Purposes of Businesses 2

1.1.6The Different Economic Sectors

1.1.7Multinational Companies

1.1.8Stakeholders

1.1.9Influence of Stakeholders

1.2Organisation of Businesses

1.2.1Organisational Structure

1.2.2Types of Organisational Structures

1.2.3Business Aims & Objectives

1.2.4Business Aims

1.2.5Business Objectives

1.3Business Environment

1.3.1External Influences

1.3.2Political & Legal Change

1.3.3Economic Environment

1.3.4Social & Technological Environment

1.3.5Lifestyle & Technological Environment

1.3.6Corporate Social Responsibility

1.3.7The Competitive Environment

1.3.8Innovation

1.3.9Risk & Uncertainty

1.3.10Porter's Five Forces

1.3.11SWOT Analysis

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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Business Aims & Objectives

Business Objectives