PART OF THE REVISIONSTATION TEACHING RESOURCES PACK FOR EDEXCEL IGSE BUSINESS Businesses can have several objectives: • financial aims and objectives - survival, profit, sales, market share, financial security • non-financial aims and objectives - social objectives, personal satisfaction, challenge, independence and control.

1. 1
1.1.1 Businesses can
have several objectives

2. 2
Definition: Aims and objectives
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Why does a business set aims and objectives?
• Setting business objectives gives specific targets by which business
performance can be measured
• Setting objectives clarifies business direction and aids decision
making
#1 Financial objective: survival
• In its first year of trading, a business may aim to just survive
• This means that the business owner just aims to trade for a year,
possibly to “________________________________________________”
• When the business is more ________________________________ the
objective might change
Setting objectives can be used to motivate workers – why?

3. 3
#1 Survival continued
• Having the objective of survival means that the business owner
would want to reach a sustainable level of sales, which will allow
the business to reach its ________________________ point. This can
mean keeping prices low
• This may not mean much _________________________ at first, but when
the business starts to grow it will be able to comfortably raise
_____________________
#2 Financial objective: profit
• Profit is total revenue (money into a business) minus total costs
(money out of a business)
• The formula is _____________________________________________________
• A business will aim to maximise profit, they must do this therefore
in two ways:
1
2

4. 4
#3 Financial objective: Sales
• In the first year of a new business, one of the objectives might be to
grow the sales within the business
• For example a new online shop may wish to keep prices low to
stimulate sales
• ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
#4 Financial objective: Market share
• A business may aim to increase its market share. This is the
percentage of sales held by a business in a market.
• They will have to take sales away from competitors to achieve this
aim
• This could be done through:
1
2
#5 Financial security as an objective
• If an entrepreneur has opened a new business they may have given
up another regular paid job
• This means the entrepreneur may need the business to make money
to pay their bills; gas, electric, mortgage, loans, credit cards etc.
• ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

5. 5
#5 Financial security as an objective
• If an owner has started a business they may have given up another
regular paid ____________________________ to do so
• This means the owner may need the business to make money to pay
their bills; gas, electric, ________________________, loans, credit cards
etc.
• The business will need to give the owner financial
___________________________
#1 Social objectives
• Social enterprises are businesses trading for social or
environmental purposes
• Many businesses would consider themselves to have social
objectives, but social enterprises are distinctive because their
social and/or environmental purpose is absolutely central to what
they do
• Have a look at the Mecoco website – what is their social
objective?

6. 6
#2 Personal satisfaction
• An owner of a new business may have wanted to get personal
satisfaction from starting a business
• Working for yourself can be very satisfying, and give the business
owner a sense of achievement
#3 Challenge
• Some owners may start a business and want a challenge in life,
perhaps the idea of _________________________ for someone else does
not appeal
• Some owners want to start a business to see if they can create
something new that makes a profit and will give them fresh
_______________________________________ every day
Why would personal satisfaction be a non-financial objective of a
business?

7. 7
#4 Independence
• A business owner may wish to have independence, so they do not
have to work for a company
• If they start their own business, they will be able to make all their
own decisions
• ___________________________________________________________
___________________________________________________________
___________________________________________________________
#5 Control
• Owners may wish to have more control over their own working lives
• Owning a business gives more flexibility in terms of; days off,
holidays, working hours etc.
• They also get to have control over the business; what products or
services are sold,
___________________________________________________________________________
___________________________________________________________________________
• Which of these factors do you think is the most important?

8. 8

9. 9
PLENARY QUIZ
Can you identify if these business objectives are financial or non-
financial?
1. Survival FINANCIAL / NON-FINANCIAL
2. Personal satisfaction FINANCIAL / NON-FINANCIAL
3. Profit FINANCIAL / NON-FINANCIAL
4. Challenge FINANCIAL / NON-FINANCIAL
5. Sales FINANCIAL / NON-FINANCIAL
6. Independence FINANCIAL / NON-FINANCIAL
7. Market share FINANCIAL / NON-FINANCIAL
8. Financial security FINANCIAL / NON-FINANCIAL
9. Control FINANCIAL / NON-FINANCIAL

10. 10

11. 11

12. 12

13. 13