1.3 Business objectives

Question 1

vision statement

Answer 1

a long term goal, a dream or understanding of what the future would look like

Question 2

mission statements

Answer 2

a short statement that defines what the organisation does, right now, in order to achieve its vision

Question 3

vision and mission statements are seen by who

Answer 3

interested parties see it
workers also see it to be motivated to work

Question 4

value

Answer 4

all the benefits the a business creates for the stakeholders involves

Question 5

objectives

Answer 5

A stated outcome that a business aims to achieve; can be broadly stated in vision and mission statements, or more narrowly stated with measurable outcomes.
follow SMART criteria

Question 6

when a business focuses on growth it..

Answer 6

wants to expand its business in terms of revenue, profit, number of employees etc

Question 7

what does the business do when it grows

Answer 7

it increases its revue and reduces it unit of average cost= increase in profits

Question 8

value extraction

Answer 8

prioritizing profits for shareholders can result in what economics call value extraction which is when one group of stakeholders captures for itself a very large portion of the value created by a business.

Question 9

Corporate social responsibility (CSR)

Answer 9

business actively seek ways to improve society and the environment through core business activities and business desighns

Question 10

what should ceos do for the csr

Answer 10

businesses should be optimising and distributing value for multiple stakeholders instead of maximising value for just one group.

Question 11

generative (regenerative) businesses,

Answer 11

A business that aims to strengthen its social and environmental ecosystems by creating opportunities for other businesses and communities to develop, and by restoring the natural environment. The business enjoys a network of mutual benefits and increased resiliency.

Question 12

local-social responsabilities

Answer 12

provide a secure network for local community

Question 13

biomimicry

Answer 13

The process of mimicking nature’s forms, processes and systems to solve human problems.

Question 14

global-ecological responsabilities

Answer 14

reduce its CO2 emissions by using more renewable energy
reduce its water usage or recycle wastewater
source its raw ingredients from farms using regenerative agriculture that promotes biodiversity
use transportation methods that do not cause air pollution

Question 15

limitation of the CSR

Answer 15

• shareholders may need educating in the benefits of long term objectives
• csr will increase cost production
• if business doesnt follow csr comitments there is reputational risk

Question 16

strategy

Answer 16

plan that an organisation creates in order to reach a specific goal. significant decisions ad actions
how of the business

Question 17

linear production

Answer 17

taking resources from the earth, making products with thhem, then disposing of the producs

Question 18

circular production

Answer 18

reducing waste by making sure that the outputs of the production system feed back into the system

Question 19

STEEPLE factors- move towards circular systems

Answer 19

socio cultural- consumers are more aware than ever of ethic and sustainabilities of business- they expect system-wide change
technological factors- ability for entrepeneurs to connect and share ideas globally.
ethical factors- do the right thing
political factors- raw materials can only be get in certain areas- cause political conflicts
legal factors- laws require source sustainable

Question 20

tactic

Answer 20

small action that a business takes to reach their goal

Question 21

principals of circular economy

Answer 21

eliminate waste and pollution, circulate products and materials regenerate nature

Question 22

circular supply models

Answer 22

a business model that enable businessses to reduce new material inputs, replacing them with recovered or bio-based materials

Question 23

resource recovery models

Answer 23

focus on business of collecting sorting and processing waste materials

Question 24

product life extension models

Answer 24

focus on extending the time that a consumer uses a product

Question 25

aims of product life extensin models

Answer 25

design for durability
reuse and repair
remanufacturing

Question 26

sharing models

Answer 26

allows consumers to share use of product with strangers- like an airbnb

Question 27

2 types of sharing models

Answer 27

co-ownership= lending phyical goods
co-access= allowing others to take part in an activity that would have occured anyways

Question 28

product service system models

Answer 28

selling the service of using a product

Question 29

2 types of product service system models

Answer 29

product orientated service- focus on selling proucts and associated services
user orientated product service system models= temporary access to product

Question 30

negative effect of circular business models

Answer 30

• undeveloped systems for waste recovery
• less land for food production
• unintended consequences
• rebound effect
• dont adress social issue