What are the aims of a business?
What the business wants to achieve in the long term
Aims provide a general direction for the business.
What are the objectives of a business?
Goals or targets that need to be met to achieve an aim
Objectives provide specific milestones for the business.
Why do businesses need to have objectives?
- Employees need something to work towards
- Help owners decide where to take a business and necessary steps
Objectives guide decision-making and performance assessment.
What does SMART stand for in the context of business objectives?
Specific, Measurable, Achievable, Relevant, Time-bound
SMART criteria help in assessing business performance.
According to Peter Drucker, what is the principal objective of a business?
Survival
Organizations must adapt and change to cope with environmental changes.
What is the objective of profit maximization?
To make a profit that can reward owners and invest into the firm
Profit is vital for growth and increasing wealth.
What does sales maximization aim to achieve?
Increase sales as much as possible in a particular time period
Growing sales is a healthy sign for a business.
What is the objective of cost efficiency?
To reduce costs
Lower costs provide a competitive advantage, but may affect product quality or customer service.
What is meant by employee welfare in business objectives?
Meeting the needs of employees more effectively
Improved welfare leads to happier, more productive workers.
What is the goal of customer satisfaction?
To meet the needs of customers
Satisfied customers are more likely to return and become loyal.
What are social objectives in a business context?
Promote prosperity and develop a strong relationship with the local community
This may involve minimizing pollution and job creation.
