These give a business direction and provide a purpose for what the business does each day. A business aim is the overall long-term target or goal of the business, whereas business objectives are the short-term steps a business needs to take to meet its overall aims.
A business may have several different objectives that will help it to meet its aim. Business aims and objectives fall into two main categories: financial and non-financial. Financial aims and objectives are linked to money and cover:. Non-financial aims and objectives are linked to anything other than making money for the business and are categorised as:.
What are business aims and objectives All businesses have aims and objectives. That said, a firm set of objectives can be beneficial for most businesses and may lead to consistent success. Basically, a business objective is a short- or long-term goal that your organization works to achieve.
Most business objectives are future-oriented, although this may not always be the case. Objectives are important for businesses because they can help to focus the efforts of an organization. An objective can be as simple as turning a profit , completing a project, or achieving some other goal. Some business objectives can be broad, while others may be very narrow in scope. Developing objectives for your business is very important for several different reasons:.
Developing clear business objectives can be very beneficial to your organization. In particular, business objectives allow management to be more effective when interacting with employees, which leads to a well-functioning business.
One of the biggest advantages of business objectives is that they can make proper planning easier. With a clear objective in mind, developing a plan to achieve the objective is much simpler. Growth versus profit: for example, achieving higher sales in the short term e.
Short-term versus long-term: for example, a business may decide to accept lower cash flows in the short-term whilst it invests heavily in new products or plant and equipment. Large investors in the Stock Exchange are often accused of looking too much at short-term objectives and company performance rather than investing in a business for the long-term. Ethical and socially responsible objectives — organisations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.
Public sector corporations are run to not only generate a profit but provide a service to the public. This service will need to meet the needs of the less well off in society or help improve the ability of the economy to function: e. Public sector organisations that monitor or control private sector activities have objectives that are to ensure that the business they are monitoring comply with the laws laid down.
Health care and education establishments — their objectives are to provide a service — most private schools for instance have charitable status. Their aim is the enhancement of their pupils through education. Charities and voluntary organisations — their aims and objectives are led by the beliefs they stand for. A business may achieve an objective and will need to move onto another one e.
Company Reg no: VAT reg no Main menu. Subjects Shop Courses Live Jobs board. View shopping cart. View mytutor2u. Account Shopping cart Logout.
0コメント