What goals do businesses set, and why do those goals change?
The reasons businesses set aims and objectives, the main types of objective (survival, profit, growth, market share, customer satisfaction, social and ethical aims), and why objectives differ between businesses and change over time.
A focused answer to AQA GCSE Business 3.1.3, covering why businesses set aims and objectives, the main types of objective, and why objectives differ between businesses and change over time.
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What this dot point is asking
AQA wants you to explain why a business sets aims and objectives, name the main types of objective, and explain why different businesses set different objectives and why those objectives change as the business develops.
Aims and objectives
Setting objectives gives the business a clear sense of direction, helps motivate employees, and provides a way to measure performance against targets. Good objectives are often described as SMART: Specific, Measurable, Achievable, Realistic and Time-bound. "Increase sales by 10 percent within 12 months" is SMART because you can tell exactly whether it was met; "do better" is not. SMART objectives matter because they let a business judge success objectively, set staff targets, and decide where to put resources. Aims and objectives also cascade: the broad aim (be the regional market leader) breaks down into yearly objectives (open two new branches, raise market share), which break down into daily targets for staff.
Types of objective
Why objectives differ and change
Objectives vary because of the size, age, ownership type and market of the business. They also change over time.
For example, a brand-new start-up often aims simply to survive its first year. Once established, the same firm may switch to a growth objective, opening new branches. A charity may put social aims above profit, and a small business owner may value independence over maximising profit. Objectives also change with circumstances outside the firm: a recession can push even a healthy business back to a survival objective, while a new competitor might force a shift toward customer satisfaction to keep loyalty. The ownership type matters too: a plc under pressure from shareholders may prioritise short-term profit, whereas a family business may take a longer view.
Try this
Q1. State two objectives a new business might set. [2 marks]
- Cue. For example, survival and customer satisfaction.
Q2. Explain one reason a business might change its objectives over time. [2 marks]
- Cue. Once survival is secure it may aim for growth, or a downturn may force it back to survival.
Exam-style practice questions
Practice questions written in the style of AQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
AQA 20182 marksOutline the difference between a business aim and a business objective. (Paper 1, Section B)Show worked answer →
A 2-mark outline question rewarding a clear distinction.
An aim is a broad, long-term goal the business wants to reach (for example, to become the market leader). An objective is a specific, measurable target that helps achieve the aim (for example, to raise sales by 10 percent in the next year).
Markers reward both halves: aim as the broad long-term goal, objective as the specific measurable step toward it. A strong answer uses the word "measurable" or refers to SMART for the objective.
AQA 20226 marksAnalyse why a new business is likely to set survival as its main objective in its first year of trading. (Paper 1, Section C)Show worked answer →
A 6-mark analyse question rewarding developed reasoning applied to a start-up.
Chain one: a new business has little brand awareness and an unproven product, so sales are uncertain and may be low at first. Survival, simply staying in business, is realistic when profit cannot yet be relied on.
Chain two: start-ups often face cash-flow pressure because they spend on stock and equipment before income builds. Aiming to survive keeps the focus on managing cash and covering costs rather than chasing risky growth. Develop each chain to a consequence (why survival, not profit or growth, fits the situation). A strong answer notes the objective will likely shift to growth once the firm is established. Markers reward developed application, not a definition of survival.
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Sources & how we know this
- AQA GCSE Business (8132) specification — AQA (2017)