Aims and Objectives

Aims and objectives

Every business exists for a purpose. It may sell goods or services. Vodafone sells network coverage (services) and mobile phones (goods).

Therefore, all businesses must have aims and objectives that identify what they wish to achieve.

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.

Aims and objectives

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.

Aims of a business

create a profit or surplus funds

sell or provide goods or services

survive

expand

maximize sales

improve product quality

beat the competition

provide voluntary services

be kind to the environment.

The aims of an organization often include to:

Why are aims important to businesses?

Aims of private sector organizations

Organizations are divided into two sectors: private and public. The sectors have different aims as they do different things.

Businesses in the private sector can vary enormously in size – your local corner shop and the national chain Tesco are both in the private sector.

Private sector businesses aim to make a profit to survive. They are usually owned by private individuals or groups.

Can you think of five private sector businesses?

Aims of public sector organizations

Public sector organizations are owned or controlled by the government or regional authorities.

Some industries, such as gas, postal, electricity, phone and railway, used to be in the public sector but were privatized to be more efficient.

Can you think of five public sector organizations?

They are not businesses because they are not seeking a profit; most of their money comes from funds that are acquired through taxes.

However, public sector organizations often have similar aims to businesses, because they also need to run efficiently.

Personal aims and objectives

We all have aims – your aim might be to pass your exams, save money or get fit.

How might objectives help businesses to achieve their aims?

In order to achieve your aims you must set yourself objectives; for example, do your homework on time, save £5 per week, or exercise daily.

Setting objectives (targets) will help you to achieve your aim.

SMART objectives

Organizations set themselves objectives to help them to achieve their aims. Many set SMART objectives:

Measurable

Specific

Achievable

Realistic

Timed

1. Specific means particular: not vague

2. Can be measured numerically

3. Can be achieved

4. Are realistic for the organization

5. Have a deadline

What does each part of a SMART objective mean?

Aims and objectives

They should be agreed by the people who have to achieve them to improve the chances of success.

Creating objectives can help an organization to measure its performance – to make sure that it is achieving its aims.

Write down a personal aim. Set a SMART objective and explain how it will help you to achieve it.

Aim: make a profitObjective: increase sales by 10% in the next six months

Here is an example of an aim with its SMART objective: