1.2 Business objectives

Question 1

what is the need for business objectives?

Answer 1

Businesses benefit from setting objectives because it is an effective way to communicate the values/purpose, direction and priorities of the business to key stakeholders.

Question 2

what is the business objective to make a profit?

Answer 2

revenue minues expenses of the business. Acceptable amounts of profit for different businesses

Question 3

what is the business objective to increase market share?

Answer 3

Market Share is the proportion of the total sales in an industry controlled by the business relative to competitors. If a business has a growing market share, its sales are increasing relative to its competitors in the industry.

Question 4

what is the business objective to improve efficiency?

Answer 4

Improving efficiency relates to using fewer resources or time in the production of goods and/or services. An increase in efficiency leads to more outputs of goods or services for each unit of input.

Question 5

what is the business objective to improve effectiveness?

Answer 5

Effectiveness is the degree to which a business achieves its stated objectives. A business is effective when it achieves improved quality standards, customer/employee satisfaction levels or Corporate Social Responsibility standards.

Question 6

what is the business objective to fulfil a market need?

Answer 6

To fulfil a market need may be an objective for a business that can provide a good or service that is not otherwise available to customers who need the service or wish to buy the product. (Gap in the market)

Question 7

what is the business objective to fulfil social need?

Answer 7

Social Objectives involve the production and/or selling of goods and services for the purpose of generating an income that can be used to improve the well-being of the community.

Question 8

what is the business objective to meet shareholder expectations?

Answer 8

Providing a return on investment to shareholders is an important objective as shareholders are the owners of a company who invest their funds into a business, expecting to receive dividends when the business makes a profit and potentially for their share value to increase.

Question 9

what are all the business objectives?

Answer 9

to meet shareholder expectations, to fulfil a social need, to fulfil a market need, to improve effectiveness, to improve efficiency, to increase market share, and to make a profit