Aims and objectives
- An aim is a long-term goal, such as becoming the market leader. An objective is a specific, measurable step towards an aim.
- Good objectives are SMART: Specific, Measurable, Achievable, Realistic and Time-bound. For example: 'Increase sales by 10% within 12 months.'
Common aims
- Survival (especially for new businesses), profit, growth, market share, customer satisfaction, financial security, and social or ethical aims, such as cutting carbon emissions.
Why aims differ and change
- Aims depend on the size of the business, its type of ownership (a charity has social aims), the competition, the economy, how long it has been running, and the owners' values.
- A new business may aim to survive, while a large established business may aim to grow or increase its market share.
Measuring success
- Businesses measure success through profit, sales, customer satisfaction surveys and market share.
- Market share = the business's sales ÷ total market sales × 100.
Key terms
- Aim
- A long-term goal of a business.
- Objective
- A specific, measurable target that helps achieve an aim.
- SMART
- Specific, Measurable, Achievable, Realistic and Time-bound.
- Survival
- Continuing to trade, a key aim for new businesses.
- Profit maximisation
- Making as much profit as possible.
- Market share
- The percentage of total market sales made by one business.
- Social objective
- An aim to benefit society or the environment.