Setting business aims and objectives — AQA GCSE Business
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Setting business aims and objectives explained
Objectives are the specific, measurable targets a business sets to achieve its aims.
Read the full explanation
They provide a benchmark for judging success: performance is compared with the objective to decide whether the business has succeeded. For example, a business aiming to increase market share might set an objective to raise its market share from 15% to 20% within 12 months. Success is judged by measuring actual market share against that target. Objectives must be specific and measurable so that judgements are evidence-based rather than subjective. They also allow comparison over time and against competitors. Without clear objectives, it is difficult to say whether a business has succeeded because there is no standard for comparison.
Your focus
- Define objectives and explain their role in judging success.
- Apply the use of objectives to a given business context.
- Evaluate the importance of measurable objectives in judging success.
Setting business aims and objectives exam tips
Marking Points
- Objectives are specific, measurable targets that provide a benchmark for judging success.
- Success is judged by comparing actual performance with the objective.
- Objectives must be measurable so that judgements are based on evidence.
- Objectives allow comparison over time and against competitors.
- Without clear objectives, success cannot be judged objectively.
Examiner Tips
- 💡When asked how objectives help judge success, explain the comparison between actual performance and the target.
- 💡Use a concrete example, such as a business with an objective to increase profit by 5%, and show how success is judged.
- 💡Link objectives to measurement: if an objective is not measurable, it cannot be used to judge success.
Common Mistakes
- Confusing aims with objectives: aims are general intentions, objectives are specific targets. Correction: use objectives for judging success because they are measurable.
- Setting vague objectives such as 'do better' which cannot be measured. Correction: objectives should be specific and measurable, e.g. increase sales by 10% in 6 months.
- Judging success without reference to the objective, relying on opinion. Correction: always compare actual performance with the stated objective.