1. Financial and Non Financial Objectives
LO: To understand what financial and non financial objectives are

2. S.M.A.R.T Objectives must be …. S – specific M – measurable
A – achievable
R – realistic
T - timed
S.M.A.R.T
LO: To understand what financial and non financial objectives are

3. Why set objectives ? Sets out what the business aims to do
Allows the business to set targets
Sets a common goal
E.g Heinz aims for their Tomato Ketchup ..”to be the world’s favourite ketchup”
LO: To understand what financial and non financial objectives are

4. How are they achieved ? Objective How is it achieved ? Problems ?
LO: To understand what financial and non financial objectives are
How are they achieved ?
Objective
How is it achieved ?
Problems ?
Sales maximisation
Profit maximisation
Increase market share
Survival

5. Financial Objectives Shareholder returns Cost minimisation
Cash flow targets
LO: To understand what financial and non financial objectives are

6. Shareholder Returns
A business must make sure it meets the needs of its owners. Many shareholders assess a business based on the dividends received.
Examples;
A high dividend per share
Increasing the share price
LO: To understand what financial and non financial objectives are

7. Cost Minimisation This can benefit a business by;
LO: To understand what financial and non financial objectives are
Cost Minimisation
This can benefit a business by;
Keeping its prices the same and having a higher level of profit
Using it to reduce costs to reduce selling price and increase their level of custom
Examples;
Lower priced raw materials
Lower levels of wastage
Reducing wage costs
These targets should be set with caution as raw materials may lead to lower quality.

8. Cash Flow Targets
Examples;
Reducing the bank overdraft by a certain sum by the end of the year
spreading its costs more evenly
Setting a contingency fund.
Cash-flow is the money coming in (inflows) and out (outflows) of a business
Many businesses get into difficulty due to a lack of cash flow rather than lack of profitability.

9. Non – financial objectives
LO: To understand what financial and non financial objectives are
Non – financial objectives
Employee/Owner satisfaction
Quality
Customer Service
Helping Others

10. Different organisations
Type of organisation
Objective
Sole trader
Partnership
Limited company
Co-operative
Public Corporation
Social Enterprise
LO: To understand what financial and non financial objectives are