Non-Financial Objectives (SQA National 5 Business Management): Revision Note
Exam code: X810 75
Provision of a service
Some organisations, especially in the public sector and third sector focus on delivering a service that benefits people or communities
Service objectives are common in areas such as health, education, transport and local facilities, where the focus is on meeting needs rather than generating income
Why do organisations set this objective?
To meet community needs where private businesses may not see a profit opportunity
To improve quality of life, particularly in rural or disadvantaged areas
To make sure vital services are accessible and affordable to all
Examples of service objectives
Example | Explanation |
|---|---|
West Coast Motors |
|
Scottish Water |
|
High Life Highland |
|
Examiner Tips and Tricks
When explaining the “service” objective, stress that the main goal is meeting needs and improving access, not profit. Use examples where the organisation clearly focuses its role on public benefit, such as Scottish Water or local transport providers.
Customer satisfaction
Some businesses set an objective of making sure their customers are pleased with both the products they buy and the service they receive
Satisfied customers are more likely to remain loyal, come back for repeat purchases and recommend the business to others
To track whether this objective is being met, organisations often gather customer feedback through surveys, online reviews or interviews
This information can highlight areas for improvement, such as staff training, product quality or after-sales care
Acting on this feedback helps businesses to strengthen relationships with their customers
Case Study
Camera Obscura is a popular tourist attraction located near Edinburgh Castle that focuses strongly on customer satisfaction
The marketing team regularly gathers feedback through online reviews, visitor comment cards and digital surveys
Managers analyse this feedback to identify what visitors enjoy and what could be improved, leading to the introduction of new exhibits and better visitor facilities
As a result, Camera Obscura has achieved consistently high customer ratings and built a strong reputation for offering a fun and interactive experience for families and tourists
Enterprise
Enterprise means being innovative, creative, and willing to take risks in order to bring new ideas to the market
Organisations with this objective focus on
Developing new products or services to meet changing customer needs
Finding fresh ways of working, such as using new technology or greener methods of production
Encouraging entrepreneurial spirit within staff, so that employees feel confident to suggest improvements or launch new projects
Enterprise objectives are especially important in industries where competition is fierce or where customer tastes change quickly
Social responsibility
Some businesses set a goal of acting in a socially responsible way
This means running their activities so they cause as little harm as possible to people, communities and the environment
Examples of socially responsible actions include
Using biodegradable or recyclable packaging to reduce waste and pollution
Paying staff fair wages and ensuring safe working conditions
Supporting local communities through sponsorship, donations, or volunteering schemes
Reducing carbon emissions by using renewable energy or eco-friendly transport
While these actions can improve a company’s image and strengthen customer loyalty, they often come at a cost. Socially responsible choices may mean
Lower profit margins if the business absorbs the higher costs itself
Higher prices for consumers if the extra costs are passed on
Case Study
Vegware is an Edinburgh-based business that makes eco-friendly catering disposables such as cups, cutlery and food containers from plant-based materials
The company aims to reduce the environmental impact of single-use packaging by designing products that can be composted with food waste, helping to cut down on landfill
Vegware has also adapted its products to meet EU and UK laws on reducing single-use plastics, showing its commitment to legal and environmental standards
It supports local communities by partnering with food banks, schools and charities to promote recycling and sustainability education
Although eco-friendly production costs more than using plastic, Vegware’s strong ethical reputation has helped it win awards and attract loyal customers who value sustainability
Examiner Tips and Tricks
If asked about social responsibility, always balance the benefits (good reputation, loyal customers) against the challenges (higher costs, reduced profits).
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