1. IGCSE Business Studies
1.5.1 Business Objectives

2. Learning Objectives
The need for business objectives and the importance of them
Different objectives that a business might have

3. Starter – Match up the key terms with their definitions
Profit
The firm or product with the highest market share in a given market
Market Leader
The amount of money a firm makes from selling it’s goods and services
Revenue
When a firm is neither making a profit or a loss.
Total Costs
Revenue – Total Costs
Breakeven
The percentage of sales in a market that are made by a particular product or firm
Market Share
The amount of money that a firm spends in order to produce goods and services.

4. What is an objective?
An objective is a target or goal. This is a desired result that a person or group of people envisage, plan and commit to.

5. Objectives Should be SMART
What does SMART stand for?
Specific
Measurable
Agreed
Realistic
Timed

6. Personal Objectives
Objectives are not restricted to businesses, many individuals set objectives too…..
Examples of types of objectives:
Weight loss
Grades
Saving money
Can you think of any others?

7. Are these objectives SMART?
To lose 15kg within 2 weeks
To save $600 dollars within the next year
To achieve at least 4 grade 7’s in the IB in June
To get fitter by Christmas

8. Task – 2 minutes
Write 2 SMART objectives for yourself

9. Hierarchy of Objectives…..
Corporate Aims
Strategic Objectives
Tactical/Operational Objectives
Individual Objectives
Why do the arrows flow in this direction?

10. Importance of Objectives….
To Measure and Control
To Motivate
To Direct
To Aid Decision making
Why are Objectives so important?

11. Business Objectives
The main motivation for setting a own business is to make a PROFIT
However people who set up in business may want to achieve a number of objectives
These can be Financial or Non-Financial
Survival
Profit
Growth
Market Share
Financial
Objectives
Employees
Customers
Environmental
Non-Financial
Objectives

12. Question…
Why do a businesses objectives change over time?