1. Business Objectives Flashcards
What are aims?
aims are the main long-term goals of a business
What are objectives?
objectives are short-term measurable target which, if achieved, will help a company to reach one of its aims
What are some business objectives?
-profit maximisation
-growth
-survival
-social & ethical responsibility
-provision of a service
-sales/revenue maximisation
-managerial objectives
-satisficing
What do business objectives spend on?
-the type of organisation
-the size of the organisation
-the types of goods or services which the organisation produces
-the competitive environment which it faces
-the history of the organisation
what are some specific aims for the private sector?
-to maximise profits
-to turn gaps in the market/innovative into a successful business enterprise
-to continue to meet customers needs and wants through adapting existing products/services
-to expand and benefit from growth
-survive
what are some specific aims for the public sector?
-to provide the same quality of service to everyone
-to provide a service which is essential to everyone
what are some specific aims for the third sector (charities)?
-to raise awareness of worthy causes
-to receive funds to help worthy causes
-provide information on how the funds have been spent
what are some specific aims for the third sector (non-profit making organisations)?
-to provide the best service and facilities for its m embers
-to use the members subscriptions for their benefit
what are some specific aims for the third sector (social enterprise)?
-ethical and more sustainable way of doing business
-social enterprises are innovative, independent businesses that exist to deliver a specific social and/or environmental mission
Why may objectives not be achieved?
-competition
-environment
-law
-political situation
-demands of shareholders
-owners
-society
What makes effective organisational objectives?
Specific
Measurable
Achievable
Realistic
Time Specific
