1.3 Setting Business Aims and Objectives Flashcards
What is survival?
Keeping the business running for a certain amount of time
What does making profit mean?
Making more revenue on your product/service than your total costs
What does profit maximisation mean?
Making changes in the business (like Reducing costs and increasing efficiency) to get more money
What does market share mean?
The percentage of the market that a business ocupies
What is the value of a share?
The current price in which a share trades in the stock market
What does business Growth refer to?
Increasing the number of employees or the number of products sold to grow the business
What does Customer satisfaction refer to?
How happy customers are with a companies product/service
What is a business aim?
The overall long term target for the business
What is an objective?
The short term steps to achieving your overall aims
What are some non financial aims and objectives?
Social and ethical objectives
Customer satisfaction
What does SMART stand for?
Specific
Measureable
Attainable/ achieveable
Realistic
Time Bound
What are some financial aims and objectives for a business?
Business survival
Profit maximisation
Growth
Increasing market share
What are some social and ethical objectives a business might have?
Using renewable energy to power their business
Making their products sustainable
Why do aims and objectives differ between businesses?
Different businesses have different purposes and different level of competition
How does the size and scale of business affect their objectives and aims?
A smaller business might aim for survival whereas a well established businesses is likely to aim for profit maximisation
