An AIM is a 'big idea' about what a business wants to achieve. John Smedley knitwear is a business based in Derbyshire which has been producing high quality knitwear. This business may aim to achieve the title of Best Knitwear company in the world.
Their aims and objectives must be SMART.
S- pecific to what must be achieved.
M-easurable, so that their achievement can be judged.
A- chievable, so that those responsible know that the target can be met.
R-elevant to the the aims of the business or realistic,
T-ime based to give a framework or times scale for the objective.
Objectives that fulfil these criteria are SMART objectives.
SURVIVAL is a typical business objective. In order to survive a company must break even (i.e. cover the costs it made, but not necessarily make a profit). Examples of objectives that could achieve the aim are:
To break-even by April
To stay in business until January.
PROFIT is important to all businesses. During the long term without profit a business could no longer trade as they are not making enough profit they would be spending more than they get back. Many business have their 'fame' from large profits, eg. Tesco made over £2.8 billion in 2007. Profit is very important as the money made can be put back into the business to achieve other aims and objectives.
GROWTH could be an objective a business has. The businesses profits could be what helps it achieve its growing objective. A growing business might employ more people or buy new machinery, they could even buy new types of good to sell to their customers. If a business has growth as one of its objectives they could get more sales and profits.
REPUTATION AND IMAGE is important for a businesses success. John Smedley Knit wear has built up a reputation for selling very high quality products. Its knitwear is popular within celebrities and used in some fashion shows. The behaviour of a football teams players on the field could change the image and reputation from good to bad or bad to good or good to better!
Their aims and objectives must be SMART.
S- pecific to what must be achieved.
M-easurable, so that their achievement can be judged.
A- chievable, so that those responsible know that the target can be met.
R-elevant to the the aims of the business or realistic,
T-ime based to give a framework or times scale for the objective.
Objectives that fulfil these criteria are SMART objectives.
SURVIVAL is a typical business objective. In order to survive a company must break even (i.e. cover the costs it made, but not necessarily make a profit). Examples of objectives that could achieve the aim are:
To break-even by April
To stay in business until January.
PROFIT is important to all businesses. During the long term without profit a business could no longer trade as they are not making enough profit they would be spending more than they get back. Many business have their 'fame' from large profits, eg. Tesco made over £2.8 billion in 2007. Profit is very important as the money made can be put back into the business to achieve other aims and objectives.
GROWTH could be an objective a business has. The businesses profits could be what helps it achieve its growing objective. A growing business might employ more people or buy new machinery, they could even buy new types of good to sell to their customers. If a business has growth as one of its objectives they could get more sales and profits.
REPUTATION AND IMAGE is important for a businesses success. John Smedley Knit wear has built up a reputation for selling very high quality products. Its knitwear is popular within celebrities and used in some fashion shows. The behaviour of a football teams players on the field could change the image and reputation from good to bad or bad to good or good to better!