Business Objectives (Cambridge (CIE) IGCSE Business): Revision Note

The importance of business objectives

• Business aims are the long-term aspirations of an organisation

• Business objectives are specific, measurable, achievable, relevant, and time-bound targets (SMART targets) that must be achieved to realise business aims

• Every successful business needs to have clear aims and objectives that guide its operations and focus the efforts of all employees towards the same goal 

  • Aims and objectives are critical for businesses to function effectively and achieve long-term success

  • A business aim may be to become the market leader in a particular industry

  • The corresponding objectives may include increasing sales by 25% over the next three years, improving customer satisfaction by 15%, and expanding into new geographic markets

Types of business objectives

• Objectives provide a focus or target for managers and employees

  • Managers can determine how well the business or particular departments have performed over a period of time

  • Employees may be rewarded for their progress towards meeting objectives

• As businesses grow, their objectives often change over time

  • For example, they may shift from survival and break-even to growth and profit maximisation

Common business objectives