Business Objectives | Business Studies for GCSE/IGCSE - Year 11 PDF Download

The Importance of Business Objectives

• Business aims are the long-term aspirations of an organization
• Business objectives are specific, measurable, achievable, relevant, and time-bound targets (SMART targets) that must be achieved to realize business aims
• Every successful business needs to have clear aims and objectives that guide its operations and focus the efforts of all employees towards the same goal
  • Aims and objectives are critical for businesses to function effectively and achieve long-term success
  • Example: A business aim could be to establish a reputation for quality products in the market. Corresponding objectives may include increasing product quality ratings by 20% in the next year and obtaining certifications for product excellence.
  • A business aim may be to become a leader in sustainable practices within the industry
  • Corresponding objectives could involve reducing carbon emissions by 30% in the next five years, implementing eco-friendly packaging, and achieving zero waste production

The link Between Aims and Objectives

The Most Common Business Objectives

• Objectives serve as a focal point for both managers and employees, allowing for a clear target to work towards. 
  • This aids managers in assessing the performance of the business or specific departments over a given period. 
  • Additionally, employees may receive recognition or rewards based on their progress towards achieving these objectives.
• It's important to note that business objectives can evolve over time. 
  • For example, a company may shift its focus from simply surviving and breaking even to striving for growth and profit maximization.

Examples of Common Business Objectives

The Objectives of Social Enterprise

• Social entrepreneurs establish socially-driven goals for their ventures. While situated in the private sector, profit-making isn't their primary aim. Instead, they generate profits to further their social causes.
• The objectives encompass various aspects:
  • Social: Providing employment and aid for marginalized demographics like the disabled or homeless.
  • Environmental: Focusing on environmental preservation.
  • Ethical: Operating the business in a socially responsible manner.
  • Financial: Generating profits to reinvest in the enterprise and expand social initiatives.

• Butterfly Books Case Study

  • Butterfly Books, a UK-based social enterprise, specializes in producing educational children's books. Their mission revolves around educating, inspiring, and entertaining children, with a specific goal of reshaping future generations by combating gender stereotypes in career choices.
  • For instance, their recent publication titled 'My Mummy is an Engineer' challenges traditional gender norms, promoting equality and diversity.

Differences in Private & Public Sector Business Objectives

• Business objectives vary between the public and private sectors due to differences in ownership.
• In the private sector, businesses are owned by individuals or other firms, whereas in the public sector, they are owned and controlled by the government.
• In the private sector, goals and objectives primarily revolve around financial outcomes, whereas in the public sector, they typically prioritize the broader welfare of society.

Public Versus Private Sector Objectives