Differences Between Aims and Objectives

Aims and Objectives Differences

The differences between a business aim and a business objective are that aims are longer term goals such as maximising profits over a set time period. Objectives are a lot more specific to aims were they are targets which are set to help achieve the overall aims of the business. Aims are like smaller goals that a business sets to help achieve their overall objectives. A common business aim would be to expand into other countries. The objective would then be to reach a profit of €100,000 within the first two years.

The importance for a business to have aims and objectives is so that it has goals to work towards. Without them the business wouldn’t have any goals and as a result would strive to be a better business. It also sets employee standards so that they know the values of the company.

Sometimes business will and should use SMART objectives. A SMART objective will have to comply with the following criteria:

Specific – Objectives should be specific and clearly state what the business hopes to achieve. For example a common business aim is increasing their profits.

Measurable – The business ...

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Sometimes business will and should use SMART objectives. A SMART objective will have to comply with the following criteria:

Specific – Objectives should be specific and clearly state what the business hopes to achieve. For example a common business aim is increasing their profits.

Measurable – The business should be able to measure whether they are meeting their set objectives. For example if a business’s profits increase by %15 then they have reached their objective. Managing objectives is just as important as setting an objective. If it is measurable

Achievable – The business should set both achievable and attainable objectives. Is the business objective an achievable objective given the amount of time they have set? Businesses should take into account things like when setting their objectives as all those can affect whether a business reaches their target.

Realistic – The business should be able to realistically achieve their objectives given their current resources. A business with 10 employees and £100 thousand revenue shouldn’t expect to reach a £1 million profit within the next year so setting targets that are both realistic to the type of business and amount of resources are available at the given time is essential to their targets.

Timed – When does the business hope to achieve their set objective. A well-mannered timeframe is the key to the business actually reaching their objective.

However not all businesses seek profit or growth. Some businesses have other objectives such as ethical and socially responsible objectives. Businesses such as Co-op and the Body Shop have objectives which are based on their beliefs of how one should treat the environment.

Public sector businesses don’t only run to make a profit but also to provide a service to the general public such as a cheap and easy to access to public transport service.