1. R061: Theory for Business Studies
Aims & Objectives
R061: Theory for Business Studies

2. Title: Business Aims & Objectives Date:
In your books…
Title: Business Aims & Objectives
Date:
Tuesday, 06 August 2019

3. ENGAGE
What do you want?
Tell me THREE things that you want to achieve before you are 30
Below each one, tell me TWO things that you will do to achieve them
Example:
Aim: I wish to achieve an A in my Business Studies exam
Objectives: I will complete all class work and coursework
I will revise for at least one hour a week
I will complete practice papers

4. Better than expected progress:
Tuesday, 06 August 2019Tuesday, 06 August 2019
LO: Understand the difference between aims and objectives and how to set them
Expected Progress:
Describe the difference between an aim and objective
Identify aims and objectives for a business
Key Words
Aim
Objective
Profit
Market share
Better than expected progress:
Explain the difference between an aim and objective
Describe aims and objectives for a business

5. Aims & Objectives
Every business exists for a purpose. It may sell goods or services. Vodafone sells network coverage (services) and mobile phones (goods).
Businesses must make a profit to exist. They need to know what they want to do and how they want to do it to attract and keep customers.
Therefore, all businesses must have aims and objectives that identify what they wish to achieve.

6. Aims & Objectives Write in your book.
Aims are what the business wants to achieve,
e.g. make a profit, be the best, attract new customers, etc. .
Objectives are the targets that businesses set themselves to help them to achieve their aims.

7. Have a look at the statements – are they aims or objectives?
Aim or Objective?
Have a look at the statements – are they aims or objectives?

8. SMART
Organisations set themselves objectives to help them to achieve their aims. Many set SMART objectives: .
objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, this objective is specific.
the business can put a value to the objective, e.g. £10,000 in sales in the next half year of trading.
Agreed by all those concerned in trying to achieve the objective.
the objective should be challenging but realistic, but it should also be able to be achieved by the resources available.
they have a time limit of when the objective should be achieved, e.g. by the end of the year.
Match the criteria with the correct description of SMART

9. Why bother? Meet Megan & Connor
They worked for a business that designed websites, Bill in sales & Barbara in design.
They have decided to quit & set up their own website design company.
Why?
What do they need to set up their own business? (skills)
I just LOVE money!
I just LOVE website designing

10. What are the SIX main types?
Increased market share
Types of objectives
Sales growth
Survival
What are the SIX main types?
Social benefit
To make a profit
Produce a service to the public

11. An objective for a new business
Survival
An objective for a new business
The objective is to run the business for at least a year without being made bankrupt or the business going under

12. An established business would have the objective to make a profit
Some business might want to increase the profit that they make

13. Sales growth Try to increase sales as much as possible
More sales means more chance of survival or making a profit
Sales can be increased in the short term by reducing prices – reduced profit
Sales can be increased in the long term by increasing marketing spend

14. Social benefit This is usually for charities
This objective is led by a belief in what they do and what they stand for
Example objective:
We will ensure that we are environmentally friendly in all we do

15. Increased market share
A business can increase market share by increasing the sales of their products against their competitors
Eg Sony and Microsoft both want to increase their market share of next gen games consoles

16. Provide a service to the public
Public sector businesses (like school and hospitals) will have this objective.
They would not want to make a profit
Eg a school might want all their students to achieve at least 5 GCSEs at grade C or above
A bus company might want to give everyone access to cheap transport

17. Business in context
Have a look at the business scenario’s, what might they have as an aim?

18. Question Practice Complete the questions on the sheet