1.3 Business Objectives

Question 1

vision statement

Answer 1

long-term goal, or dream, of what the future looks like

Question 2

mission statement

Answer 2

defines what an organisation does now to achieve goal (direct and concrete)

Question 3

function of vision and mission statements

Answer 3

helps employees keep motivated and have goals
- central point of reference
- feel connected

Question 4

value

Answer 4

benefit experienced by a stakeholder

Question 5

value of OWNERS created FOR business

Answer 5

entrepreneurship, ideas, risk taking

Question 6

value of OWNERS received FROM business

Answer 6

profits

Question 7

value of CONSUMERS created FOR business

Answer 7

payments, verbal promotion

Question 8

value of CONSUMERS received FROM business

Answer 8

varied goods/services, convenience

Question 9

value of EMPLOYEES created FOR business

Answer 9

making quality products

Question 10

value of EMPLOYEES received FROM business

Answer 10

wages, benefits

Question 11

value of SUPPLIERS created FOR business

Answer 11

raw materials, delivery

Question 12

value of SUPPLIERS received FROM business

Answer 12

payment for materials, long-term supply contracts

Question 13

SMART targets

Answer 13

Specific
Measurable
Attainable
Relevant
Time-focused

Question 14

CSR

Answer 14

corporate social responsibility

Question 15

benefits of CSR

Answer 15

• higher revenue (consumers want businesses that align with their values)
• consumers try, stay loyal to, promote and pay extra for purpose-led products
• purpose-led businesses are more likely to recruit, retain and motivate talented workers
• protect reputation

Question 16

limitations of CSR

Answer 16

• hard to change organisation’s culture
• may increase cost of production in short-term
• reputational risks is company doesn’t follow CSR commitments

Question 17

strategy

Answer 17

plan an organisation created in order to reach a specific objective
- can help a business respond to external changes

Question 18

linear strategies

Answer 18

taking resources, making products then disposing

Question 19

circular strategies

Answer 19

outputs feed back as inputs; reducing waste

Question 20

tactics

Answer 20

smaller actions taken by businesses to reach its goals
(smaller scale, smaller timeframe, less important)

Question 21

circular supply models

Answer 21

• reduce material inputs (use recovered or bio-based)
• outputs feed back as inputs

Question 22

resource recovery models

Answer 22

collecting, sorting and processing waste materials

Question 23

product life extension models

Answer 23

extends time consumers use products
(design for durability, reuse and repair, remanufacture)

Question 24

sharing models

Answer 24

share use with strangers
(co-ownership or co-access)

Question 25

product service system models

Answer 25

selling service for using product, not product itself

Question 26

limitations for circular business models

Answer 26

• undeveloped systems for waste recovery
• increased use for bio-based materials
• negative consequences (unintended)
• rebound effects
• don’t address social issues