Business Aims and Objectives

People with goals succeed because they know where they are going...It's as simple as that." 

Business Aims and Objectives Business Aims and Objectives

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    - Earl Nightingale

    As with people, successful businesses also have clearly defined aims and objectives. Let's take a look at what these are exactly and why it is essential for businesses to have them.

    Business aims and objectives definition

    Business aims and objectives help guide a company's decisions and play a big part in deciding if the business will be successful.

    Business aims are the broad, general goals that summarize what a company wants to achieve, while business objectives are specific, measurable targets that help a company achieve its aims.

    Together, business aims and objectives provide a clear direction for the company and help in setting priorities and goals, as well as making informed decisions.

    Setting business aims and objectives

    If business objectives are specific and measurable targets that help achieve business aims, we can consider them as steps taken by a company to reach its business aims. Objectives guide the next step to be taken to move closer to the company's aim. Objectives are also measured to make sure that all the right steps are orderly executed to achieve the aims.

    To help managers and employees develop, manage and track objectives the right way, they create SMART objectives. This is a smarter way of creating objectives as it helps to put together an action plan, increase productivity, and track progress. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, Time-oriented.

    Business Aims and Objectives, SMART objectives, StudySmarterSMART Objectives for Businesses, StudySmarter

    Examples of aims and objectives

    Financial aim - make a profit of £24,000 by the next financial year.

    The objective for this aim would be: make profits of £2,000 for the next 12 months.

    Financial aim - increase revenue in the next five years.

    Objectives for this aim would be as follows:

    • Increase product awareness

    • Acquire new customer

    • Create or improve digital platform

    • Increase conversion rate

    • Reduce overhead costs

    Non-financial aim - Become the most sustainable company in the industry.

    Objectives for this aim would be as follows:

    • Use recycled raw materials

    • Use production methods that reduce CO2 emissions

    Some common aims and objectives

    Some of the common financial aims and objectives are:

    • Increase revenue

    • Increase profit margins

    • Earn a return on investment

    • Attain financial stability

    Some of the common non-financial aims and objectives are:

    • Employee satisfaction

    • Customer satisfaction

    • Social responsibility

    • Relation with suppliers

    Importance of business aims and objectives

    Setting business aims and objectives is important for a couple of reasons:

    • It provides clarity of direction, helping to prioritise efforts and allocate resources effectively.
    • It helps measure company's success, allowing to track progress and make better decisions
    • It increases motivation of the employees, by helping them understand long-term goals
    • It improves decision-making process at all levels of the organisation.

    In conclusion, setting aims and objectives is a critical part of effective business management. It provides direction, focuses efforts, and drives continuous progress, helping businesses to attain their goals and succeed in the long term.

    Advantages of setting aims and objectives

    Setting aims and objectives are very important for a company, as it is a key component in ensuring success. It guides the course of action and helps to keep employees focused and act responsibly. It ensures clarity within the whole organisation. It also has many other advantages.

    Providing direction

    A set aim guides a company and its employees in making the right decisions. It directs the company in the right manner.

    Business planning

    A goal or aim helps to understand what the right next step is. It helps in planning every step of the business.

    Employee motivation

    Having a goal to reach can improve employee motivation. It can be further improved by having an incentive system in place for the first employee to reach an objective.

    Less stress

    Having set objectives gives employees a means to measure how much they have done and keep track of their performance. This helps to avoid unnecessary stress which employees face when they are unaware of their overall performance rate.

    Less wastage of time

    Setting steps (objectives) to accomplish an aim helps to achieve the aim faster. Setting objectives tells an employee exactly what is to be done next, and this saves a lot of time and prevents the employee from performing any unnecessary tasks.

    Business aims and objectives examples

    Let's take a look at some examples of business aims and objectives for Amazon.

    Examples of Amazon's business aims:

    • Be the world's most customer-centric company
    • Increase market share in e-commerce and become number-one company in the world
    • Constantly improve customer experience through innovation

    Examples of Amazon's business objectives:

    • increase Prime membership by 10% in the next year
    • launch two new products every year
    • expand the international delivery network

    As you can see, each objective helps to achieve the different business aims of the company. Of course, in reality, the relationships between goals and objectives are more complex.

    Business Aims and Objectives - Key takeaways

    • Business aims are the long-term goals a company sets for itself.
    • Business objectives are steps taken by a company to achieve its business aims.
    • Objectives should be specific and measurable.
    • Aims and objectives can be financial or non-financial.
    • Setting aims and objectives guides a company’s course of action.
    Frequently Asked Questions about Business Aims and Objectives

    What are the aims and objectives of business?

    Business aims and objectives provide a clear direction for the company and help in setting priorities and goals, as well as making informed decisions.


    Business aims are the broad, general goals that summarize what a company wants to achieve, while business objectives are specific, measurable targets that help a company achieve its aims. 

    What are the advantages of setting business objectives?

    Providing direction, business planning, employee motivation, less stress, and less wastage of time are the advantages of setting business objectives.

    What is an example of a business objective?

    An example of a business objective of a service company could be to increase customer satisfaction ratings from 3/5 to 4/5 in the next 6 months.


    Usually, objectives should be related to business aims. For example, an increase in customer satisfaction helps to achieve the aim of creating a welcoming and friendly atmosphere.

    What are the challenges of setting business aims and objectives?

    The following are some of the challenges of setting business aims and objectives:

    • Goals are too high to achieve.
    • Difficulty adapting to change.
    • Stress on employees.
    • Unequal allocation of goals.


    What is the difference between aims and objectives in business?

    Business aims are more broad, general statements that summarize what a company wants to achieve, while business objectives are more specific, measurable steps that help a company accomplish its aims. 

    Why do businesses set aims and objectives?

    Business set aims and objectives to:

    • provide direction
    • allocate resources
    • measure success
    • improve performance
    • motivate employees

    Test your knowledge with multiple choice flashcards

     Which of the following means long-term target?

    Which of the following is a financial aim?

    Which of the following best describes an aim?

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