SMART, Financial and Non-Financial Objectives – GCSE Business Studies Revision

This revision content is also featured in a video on my YouTube channel:

(I give permission for my YouTube channel to monetize this revision content)

Business Objectives?

  • Business objectives are goals a business sets itself to help achieve its aims
  • They give the business a clear target
  • This allows people to make plans in order to meet that target
  • Objectives should be SMART
  • There are two categories of objectives

SMART?

  • It’s an acronym! It tells you how to set good targets:
  • S – Specific – Plenty of detail on what you want to achieve
  • M – Measurable – How will you know when you’ve met your objectives?
  • A – Achievable – Actually possible to complete
  • R – Realistic – Pretty much the same as Achievable (makes it a nice acronym)
  • T – TimedWhen does the target need to be achieved by?

Financial Objectives

  • Objectives that are to do with money or success, for example:
  • Surviving in the market!
  • Breaking even (no debt, covering costs)
  • Improving the image of the business
  • Motivating employees
  • Maximizing profits
  • Increasing market share
  • Growing

Non-financial Objectives

  • Objectives that aren’t to do with making money, such as:
  • Personal satisfaction
  • Finding a use for your skills
  • Being your own boss (like a boss!)
  • Having something to be proud of
  • Challenging yourself
  • Being independent
  • Having control over your own business
  • Helping others
  • Getting out of the house?

 Food Stand Game!

Here’s an idea for a PS3 game (okay, it would probably work better as a Flash game but I want to use trophies): you run a business selling food to people! (Real original, I know).
But anyway, this game has trophies to collect! Each of them is a SMART financial or non-financial objective:

  • Increase personal satisfaction by 3% in the first year (Bronze)
  • Feel in control by firing at least one person in the first week (Bronze)
  • Help others by selling 10 chocolate bars in one day during the first week (Silver)
  • Break even after one year (Bronze)
  • Maximise profits: make £100 in two weeks during year 1 (Silver)
  • Have high motivation amongst employees: Get everyone to work every day for a whole week in year 1 (Gold)
  • Collect all other trophies (Platinum)

Conflicting Objectives

  • Growth VS Profit – To increase sales in the short-term you could reduce prices… but this will reduce your short-term profit!
  • Short VS Long (Term) – Do you make a profit now or do you put all your profit into buying new machines (etc.) to make a profit later?
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About Matt

I like writing, filmmaking, programming and gaming, and prefer creating media to consuming it. On the topic of consumption, I'm also a big fan of eating.
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