1:6 Business Aims and Objectives Flashcards
Describe Survival, Profit and Turnover, and Growth.
Survival: Takes a while for a business to become established, during this time they’re unlikely for them to make a profit therefore their one goal is to survive.
Profit and turnover: - Everyone will benefit, owners and shareholders get better returns on their investments. Improved variety of goods on offer, employees have job security and morale is improved, the business can expand.
Growth: Extending its range of products, expanding the amount of branches and taking over other branches.
Describe Corporate Image, concern for the environment, and social responsibility.
Corporate Image: A business wants a good image, e.g. good services and value.
Concern for the environment: Businesses are conscious that their responsibility is to reuse and recycle. Some businesses plant trees, provide food for wild life, use natural light and ventilation and use recyclable items.
Social Responsibility: Caring for the environment is one way, but others include: working with local schools, sponsoring local events/teams and opening at special times for disabled customers.
How can businesses aims be in conflict?
- Shareholders want profit- they might not be happy if some of this profit is donated to charity, meeting the businesses social responsibilities.
- Managers/Owners may want to grow the business physically which requires some of the profit to be invested instead of being paid to shareholders.
How can business aims be useful for businesses?
They define what the business wants to aspire to be. It serves as a guide and provides a target for the business to achieve.
How are working conditions associated with business aims?
A business’s most important asset is arguably its workers. Good employers may pay the Living Wage rate.
How is equality associated with business aims?
Equality includes: All customers being treated equally, female and male employees are paid equally. It can also include disabled and able persons being treated equally in terms of working conditions/environment. Having equality can be good for public appearance.
Why are social responsibilities associated with business aims?
Many businesses may refuse to trade in goods which have been made in countries that have exploited workers, i.e. they will only sell fair trade items. They may also do things to prevent waste, e.g. expensive plastic bags. This is good for public appearance.
