Non-financial aims and objectives - Business aims and objectives - Edexcel - GCSE Business Revision - Edexcel - BBC Bitesize (2024)

FAQs

What are the 5 non-financial aims and objectives of a business? ›

Non-financial objectives relate to the employee satisfaction, customer satisfaction, corporate social responsibility and so on. The shift of focus to include more than just profits in the objectives of the company is called the triple bottom line: profit, people and planet.

Financial aims and objectives

are linked to money. Their goal is to either make sure the business can afford to keep running or help it to make a profit. An entrepreneur. may have more than one financial aim or objective that they use to give their business direction.

Business objectives

An objective is a target set by a business. It helps the business prioritise what has to be done to achieve the success it wants.

Social objective are those objectives of business, which are desired to be achieved for the benefit of the society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its welfare.

A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims. A business may have several different objectives that will help it to meet its aim.

An example of an objective for market share might be 'to have 5% share of the fast food market within a 100-mile radius in the first 12 months'. Financial security relates to a business being able to afford to pay off all its costs and have enough cash left to survive.

Non-financial aims and objectives. are linked to anything other than making money for the business. These are usually linked to personal reasons behind an entrepreneur. setting up a business.

Examples of aims and objectives

Financial aim - increase revenue in the next five years. Objectives for this aim would be as follows: Increase product awareness. Acquire new customer.

Aim is long-term and provides overall direction, while objectives are short-term and measurable. Aim focuses on the purpose and "why" of a project, while objectives emphasize the actions and "what" to accomplish. Aim is subjective and open-ended, whereas objectives are objective and quantifiable.

Non-financial aims and objectives are those that are related to areas such as customer satisfaction, employee satisfaction, and environmental sustainability. They focus on the broader impact a company has on society and the world around it.

What are examples of non-financial aims? ›

We'll also share tips on how to harness the power of each to elevate your business to incredible heights. Non-financial aims are those that focus on other areas other than financial means, these can include customer satisfaction, employee loyalty and social responsibility.

Financial Aims: Survival, maximise or increase profit, growth, increase dividends to shareholders. Non-financial aims: ethical, e.g. no animal testing, achieve customer satisfaction, achieve a personal challenge or independence.

Financial objectives are usually quantifiable and measurable, such as reducing costs, increasing revenues, or optimizing returns. Non-financial objectives are more qualitative and subjective, such as enhancing employee satisfaction, improving customer experience, or supporting social causes.

"Businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for shareholders and owners'.

Here are some of the non-financial motives that are often quoted by entrepreneurs: More control over working life – want to choose what kind of work is done. The need for greaterindependence is a major motivator. Need a more flexible and convenient work schedule, including being able to work from or close to home.

Non-financial aims and objectives. are linked to anything other than making money for the business. These are usually linked to personal reasons behind an entrepreneur. setting up a business.

Non-financial objectives are more qualitative and subjective, such as enhancing employee satisfaction, improving customer experience, or supporting social causes. Both types of objectives are important for your long-term success, but they may sometimes conflict or compete with each other.

Credit Provision: They provide credit and loans to individuals and businesses, often catering to sectors or clients not served by traditional banks. Investment Opportunities: NBFIs offer various investment products and opportunities, such as mutual funds, hedge funds, and private equity funds.

Non-financial motives relate to an entrepreneur setting up a business for reasons other than to make money. Reasons might include personal satisfaction, challenge, being your own boss and independence. An entrepreneur may feel a level of personal satisfaction that they have created a successful business.