3.1.3 Setting business aims and objectives


Additional information

  • What are business aims and objectives
  • Purpose of setting objectives
  • Role of objectives in running a business
  • Changing objectives
  • Use of objectives in judging success

Students should be able to:

  • understand the main aims and objectives for businesses: survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives and shareholder value
  • understand the role of objectives in running a business
  • understand how and why the objectives set will differ between businesses (reasons include the size of the business, level of competition faced and type of business (not-for-profit organisations))
  • understand how and why the objectives set may change as businesses evolve. Students should consider how the objectives of larger more established businesses might differ from smaller start-up businesses, eg becoming the dominant business in the market, international expansion, increasing shareholder value and ethical and environmental considerations
  • understand the success of a business can be measured in other ways than profit.