Business Aims and Objectives
The main aims a business can set, why it sets objectives, and how and why those aims differ between businesses and change as a business grows from survival to profit and growth.
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Free interactive practice at using the material, which is what the marks are for.
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What a business is aiming for
Every business works towards goals. A brand new firm often just wants to survive, while a large one may aim for growth or a bigger share of the market. Setting clear aims gives everyone something to work towards and a way to judge success. This module looks at the main aims and why they differ and change.
Aims vocabulary
Learn these four terms before you study the aims.
New against established
A business sets different aims depending on its stage.
Match the aim to the business
A top answer never lists aims in the abstract. It links each aim to the business in the question: a new firm fighting to survive, a growing firm chasing market share, or a charity pursuing a social aim rather than profit. Remember that aims change as a business grows, from survival at the start to profit and growth later.
Match the aim
- survival
- growth
- market share
- customer satisfaction
- staying in business through hard early years
- getting bigger by selling more or opening branches
- holding a larger part of the market than rivals
- keeping buyers happy so they return
Match the objective
- a social objective
- a profit objective
- a growth objective
- a survival objective
- to help the community or the environment
- to earn more than the business spends
- to open new branches next year
- to still be trading at the end of year one
The first aim
What is usually the first aim of a brand new business?
- Survival.
- Growing overseas.
- A large market share.
- Rewarding shareholders.
Common aims
Select the TWO aims a business might set.
- To make a profit.
- To grow the business.
- To control the weather.
- To lose customers on purpose.
How aims change
Put these aims in the order a growing business usually meets them, earliest first.
- Survive the first year
- Cover all its costs
- Make a steady profit
- Grow and open new branches
- Expand into other countries
Complete the facts
A long-term goal the whole business works towards is an _____. A specific step towards it is an _____. The first aim of a new firm is usually _____. The part of a market a business holds is its market _____. A charity may set a _____ aim rather than aiming for profit.
A growth target
A cafe sets a growth objective to double the number of shops it owns. It has 3 shops now. Multiply 3 by 2 to find the target number of shops. What is the answer?
Why aims differ
Tap the TWO reasons the aims of two businesses might differ.
- one is a small start-up and one is large
- one is a charity and one is a company
- the businesses have different names
- the logos are different colours
Read the business
Read each business and choose its most likely main aim.
- A cafe opened last month and is struggling to cover its costs. What is its main aim?
- A large, profitable chain wants to sell in more countries. What is its main aim?
- A charity runs a food bank for local families in need. What is its main aim?
Explain the aims
Explain the main aims a business can set and why those aims change as a business grows.
- Describe two aims a business might set
- Explain why a new business and an established one set different aims
- Explain why a business changes its aims as it grows