Aims & Objectives of a Business - comparing the NHS with McDonalds

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        Zeeshan Shahid BTEC Business Unit 1 Assignment 1b        Page  of


Aims & Objectives

Assignment 1B

Zeeshan Shahid

Aims & Objectives of a Business

Included in this report:

Why do Businesses Need Aims?                                        Page 3

Why do businesses Need Objectives?                                Page 5

Examples of Businesses and Their Aims                         Page 6

& Objectives        

Case Studies: McDonalds & The NHS                                Page 10

Similarities & Differences                                                Page 11

Different Aims & Objectives                                        Page 14

Why Do Businesses Need Aims?

Businesses have aims they want to achieve. This could be for E.g. to make profit, or increase the amount of profit they are making. Businesses need aims so they have a target, a goal they want to reach.

Below are some examples of aims for Businesses:


This is common in most businesses. This is when the business makes enough money to cover all the costs (the business has broken-even) then the money made on top is called profit.

To make profit is an aim for many businesses; Morrison’s being one of the many. Morrison’s make a profit by buying products for a certain price from wholesalers and then selling the products for more than they paid. This is making profit.

Profit maximisation

This is mostly common in privately owned businesses. They will usually aim not only to make a profit but to maximise their profit and increase this each year.

Profit Maximisation is a business aim for McDonalds. Customers are already coming into the shop and buying food/drink, however McDonalds  introduce offers such as ‘Add 30p to your price and get large fries with a choice of a large Drink’. This type of offer is trying to get as much money out of the customer as possible.


A business may aim to simply survive. This could be because is trading is difficult and aiming to make profit would be unrealistic, thus the business may aim just to survive.

The NSPCC has an aim of survival. This is because the charity does not want to make profit; it just wants to continue to exist.

Break – Even

Breaking even is a method of survival. This is where a business aims to make enough money to cover the total costs. So the business does not make a loss, neither does it make a profit.

Again the NSPCC is an example of a business which employs this aim. The charity aims to break-even so it can at least cover all costs then everything else it gives away.


If a business aims for growth, it means it wants to sell more goods or services. This could mean by opening more branches or even buying out a competitor.

Starbucks Coffee is a business which is aiming for growth. The business is opening more branches where it can due to how successful it has been.

Service Provision

When a business aims for Service Provision it means that it either wants to offer a new service or improve existing services to attract more customers. Some businesses extend their websites to allow customers to buy goods online.

The NHS aims for service provision as the business wants to constantly improve its service to the public so the service is more efficient and they help more people.

Market Share

Countless businesses have a constant aim of Market Share; to take business away from competitors.

KFC is always aiming for Market Share; the business is constantly wanting to take people out of McDonalds & Subway so the business makes more money itself. It does this by doing special offers etc.

Relations with other Businesses

When businesses aim to improve or develop relations with other Businesses it can involve join initiatives or to offer services to more people.

Lloyds Bank recently merged with HBOS, this was due to one bank failing but it is because of this relationship that many people still have the service of a bank, so in turn both separate banks are gaining from each other.

Join now!

Above are 8 examples of aims. A business may have many aims but it would be wise for the business to select between 1 and 3 aims which are appropriate to what the business is/does.

Why Do businesses Need Objectives?

Business Objectives tend to be more specific than aims. These are targets which are set to help achieve the aims of the businesses. This helps as it is easier to achieve an aim if it is split up into smaller steps.

However some ...

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