Definition: Objectives are specific goals that a business sets to guide its decisions and measure its success in the short term.

Types of Objectives:

1. Financial Aims and Objectives – focused on money-related outcomes.

Survival – staying in business.
Profit – when revenue exceeds total costs.
Sales – increasing the number of goods and services sold.
Market share – gaining a larger portion of the market relative to competitors.
Financial security – ensuring stable cash flow and sustainability.

2. Non-Financial Aims and Objectives – focused on goals not related to money.

Social objectives – helping society or contributing to community welfare.
Personal satisfaction – achieving a sense of accomplishment for the owner or employees.
Challenge – tackling new opportunities or overcoming difficult goals.
Independence and control – being self-reliant and making autonomous business decisions.

As businesses evolve, their aims and objectives often shift to reflect internal growth or external pressures.

Reasons for Change:

Market conditions – changes in customer demand, competition, or the economy.
Technological developments – new technologies can create opportunities or threats.
Business growth – expanding operations may require new goals.
Changes in legislation or regulations – legal requirements can force adjustments.
Internal factors – changes in ownership, leadership, or workforce priorities.