Aims and Objectives An Introduction

What do they mean? AIM – What the business wants to do in the long term. They are usually quite vague e.g. to be profitable OBJECTIVE – practical targets which work towards achieving the aims e.g. increase profits by 10%

What are your aims? (remember to think for the long term) To do well in exams To be successful To have a career To earn money to live comfortably

Common aims of a business To increase the number of sales HOW? Advertising Promotion Improve the product

Common aims of a business To increase market share Market Share is the proportion of sales made by one company in a market The Cola Soft Drinks Market

Common aims of a business To make a profit Revenue from each sale should be greater than the cost of producing a good. Profit is sometimes retained or kept by the owners

Common aims of a business To have a positive cash flow This is essential so that the business can pay debts If the business cannot pay creditors it faces bankruptcy