1 - Business Objectives Flashcards
What Are The 6 Business Objectives?
~ Profit.
~ Growth.
~ Survival.
~ Cash flow.
~ Social.
~ Ethical.
One Business Objective Is Profit, What Does This Mean?
To achieve a sales revenue that is higher than total costs.
What Is The Formula For Profit?
Sales Revenue x Total Costs
One Business Objective Is Growth, What Does This Mean?
(2 Points)
~ To increase in size either by value or volume of sales.
~ This may be organically or externally.
What Are Examples Of Organic Growth?
(2 Points)
~ Opening new stores.
~ Launching new products.
What Are Examples Of External Growth?
(2 Points)
~ Joining with other businesses.
~ Taking over other businesses.
One Business Objective Is Survival, What Does This Mean?
To continue to exist as a business.
One Business Objective Is Cash Flow, What Does This Mean?
To ensure sufficient cash is available to meet day to day expenses.
One Business Objective Is Social, What Does This Mean?
~ To behave in a way which benefits society.
One Business Objective Is Ethical, What Does This Mean?
To behave in a way which is considered morally correct.
Define The Acronym SMART
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Timely
What Is A Mission Statement?
(2 Points)
~ Is a brief written statement of the purpose of an organisation.
~ Ideally it guides the actions of an organisation, spells out the overall goal and provides a sense of direction making for all levels of management.
What Is The Mission Statement Order?
Mission statement
Corporate aims
Corporate objectives
Corporate strategy
Business tactics
What Are Corporate Aims?
The long term targets and plans to fulfil the mission statement.
What Are Corporate Objectives?
The medium to long term quantifiable targets to fulfil the mission statement.
