AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Understand the main aims and objectives for businesses: survival, profit…
Full specification wording
Setting business aims and objectives: understand the main aims and objectives for businesses: survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives and shareholder value
Businesses set aims (general intentions) and objectives (specific targets).
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 6 of 10
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Businesses set aims (general intentions) and objectives (specific targets). Main aims include survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives, and shareholder value. Survival is vital for new or struggling businesses. Profit maximisation means making as much profit as possible. Growth can be domestic (within the home country) or international (expanding abroad). Market share is the proportion of total market sales a business holds. Customer satisfaction focuses on meeting customer needs to build loyalty. Social and ethical objectives involve benefiting society and acting responsibly. Shareholder value means increasing the returns to owners or shareholders. These aims guide decision-making and provide criteria for judging success.
What earns the marks
- Survival is a key aim for new or struggling businesses.
- Profit maximisation means making as much profit as possible.
- Growth can be domestic (within the home country) or international (expanding abroad).
- Market share is the proportion of total market sales held by a business.
- Customer satisfaction focuses on meeting customer needs to build loyalty.
- Social and ethical objectives involve benefiting society and acting responsibly.
- Shareholder value means increasing returns to owners or shareholders.
Common mistakes and how to put them right
Confusing aims and objectives.
Put it right: Use aims for general direction and objectives for measurable targets.
Thinking profit maximisation is the only aim.
Put it right: Recognise that aims vary by business and context.
Mixing up domestic and international growth.
Put it right: Clearly distinguish between the two.
Exam tips
- Learn each aim with a brief definition and a real or hypothetical example.
- When analysing, explain how the aim affects business decisions, e.g. survival may lead to price cuts.
- Use the context of the business to justify which aims are most important.
Try the lesson
The start of the Setting business aims and objectives: understand the main aims and objectives for businesses: survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives and shareholder value lesson, made from checked teaching notes for this specification point.
Have a go first
Which one of the following is an aim that a new business might set in order to keep trading through its first year?
Listen
Businesses set aims (general intentions) and objectives (specific targets). Main aims include survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives, and shareholder value. Survival is vital for new or struggling businesses. Profit maximisation means making as much profit as possible. Growth can be domestic (within the home country) or international (expanding abroad). Market share is the proportion of total market sales a business holds. Customer satisfaction focuses on meeting customer needs to build loyalty. Social and ethical objectives involve benefiting society and acting responsibly. Shareholder value means increasing the returns to owners or shareholders. These aims guide decision-making and provide criteria for judging success. A strong answer earns marks for these points. Survival is a key aim for new or struggling businesses. Profit maximisation means making as much profit as possible. Growth can be domestic (within the home country) or international (expanding abroad). Market share is the proportion of total market sales held by a business. A common slip: Confusing aims and objectives: aims are general, objectives are specific. Instead, use aims for general direction and objectives for measurable targets. Exam tip: Learn each aim with a brief definition and a real or hypothetical example.
See it
Key words
Say what each word means before you turn the card.
Business aims
Try answering aloud or in your head before turning the card.
Objectives
Try answering aloud or in your head before turning the card.
Survival
Try answering aloud or in your head before turning the card.
Profit maximisation
Try answering aloud or in your head before turning the card.
See every definition
- Business aims
- General intentions that businesses set, guiding decision-making and providing criteria for judging success.
- Objectives
- Specific targets that businesses set, guiding decision-making and providing criteria for judging success.
- Survival
- A key aim for new or struggling businesses.
- Profit maximisation
- Making as much profit as possible.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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