Aims & Objectives of a business

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AO1 Unit 1 Business Aims

Aims & Objectives of a Business

When a new business starts up, they have a number of aims and objectives to look up to as a goal of the new business.

 An aim is when the business has set up some goals to achieve; it is a statement of purpose, meaning the aims are made for the business for a reason, e.g. we want to get £3200 from the next profit share etc

Business Objectives are a clear view of targets which have been set out by the business. The business then plans out how to achieve these targets/aims by a number of ways to suit the targets, so then can be achieved to help the business stand. The Objectives are broken down so that they are easier to achieve. The objectives help measure the progress towards its aims.

E.g. of common business aims,

  • To make profit
  • To increase market share
  • To provide services
  • To improve the quality of a product or service

To Make Profit

One of the most important objectives of a business is to make profit. Without profit, a business is unable to do all the things a business wants to in order to continue being successful, for example, without profit, the business can’t keep its shareholders happy, it can’t pay higher wages to its employees, it can’t invest in better technology to improve its products and so on. A company that does not make profit will find it difficult to reinvest money into research and development; and the business will also find it complicated to invest in new technologies and equipment.

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Total Revenue is the total amount of money added up which goes into the business from selling the product or service. It can be shown as:

Number of items sold x Selling price = total profits (revenue)

Private sector businesses have the main aim of making a profit. If the total profit coming in the business from selling a product or service is bigger than the total summed up costs involved in making or supplying it, the business has made a profit.

Entrepreneurs (owners of a business), risk their investment in a business and profits ...

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This essay is written to a high standard when compared to other GCSE essays. There are no obvious spelling, punctuation or grammatical errors. The author occassionally uses capital letters in the middle of sentences when they are not needed and this error could be viewed in a negative manner by the examiner. Some marks won for good structure could be lost for these small errors.

This essay shows a lot of detailed knowledge in the main areas of aims & objectives of businesses and is able to use basic theory to provide reasoning to how the aims & objectives should be carried out. However there is a lack of analytical terminology used. This is very apparent and is such a shame, as if the author had included some kind of conclusion or even tried to analysis the different areas then much higher marks could have been awarded. Detailed use of examples does pick up some of the marks that are lost, these are gained by showing knowledge in a certian area in the subject. A must in Business essays is to give detailed examples as lots of marks are available for knowing about them. The actual theory behind a business move is desirable but not as essential to gain top marks.

This essay gives a good explanation to how the aims & objectives of a business are crucial to the success of a business and how they should be worked on to give that success.