Business - 9225 OxfordAQA

Setting Business Aims And Objectives

Bayani Gaba-gaba

Ask two shop owners on the same street what they are trying to do and you can get answers that sound identical and mean completely different things. One says she wants the business to do well. The other says she wants to be selling from three shops by the end of next year, each taking at least 40,000 a month. Only the second of those two women can tell, on any given morning, whether she is winning.

That is the whole of this topic. In this lesson you will separate an aim from an objective and learn the objectives the specification actually names, from survival to shareholder value. You will see why the objectives a business sets depend on its size, its competition and what kind of organisation it is, and why they change as it grows. You will look at what the public sector is trying to achieve instead of profit, at the many ways success can be measured when profit is not the point, at why governments spend public money encouraging people to start businesses at all, and finally at the reasons so many new businesses do not survive their first few years.

Manufura

  1. What are business aims and objectives?
  2. Purpose of setting objectives.
  3. Role of objectives in running a business.
  4. Changing objectives.
  5. Public sector objectives.
  6. Use of objectives in judging success.
  7. Governments’ role in promoting enterprise.
  8. Reasons why new businesses can fail.

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Takardar Darasi

Return to the two shop owners. The first has an aim: a general, long-term statement of where she wants the business to end up. Aims are not useless. They tell staff, lenders and the owner herself what the point of all this is. But an aim cannot be failed, because it cannot be measured, and a target that cannot be failed cannot be used to run anything.

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Nazarin Darasi

Barka da kammala darasi akan Setting Business Aims And Objectives. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. Which one of the following is the most likely objective for a business in its first year of trading? A. Increasing shareholder value B. International expansion C. Profit maximisation D. Survival Answer: D
  2. Which one of the following might cause a new business to fail? A. Good business management B. Keeping accurate records of cash C. Running out of cash before customers pay D. Setting clear objectives Answer: C
  3. A business sells 6 million litres of juice in a market where total sales are 40 million litres. What is its market share? A. 6.7% B. 15% C. 24% D. 66.7% Answer: B
  4. Which one of the following is most likely to be an objective of a public sector organisation? A. Increasing the share price B. Maximising profit for shareholders C. Paying a dividend to owners D. Providing a service to everyone who needs it Answer: D
  5. Which one of the following best explains the difference between an aim and an objective? A. An aim is set by employees and an objective by the owner B. An aim is a general long-term goal and an objective is a specific measurable target C. An aim applies to the public sector and an objective to the private sector D. An aim must be financial and an objective must not be Answer: B

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