1.3.1 Business Aims and Objectives Flashcards
1
Q
Why do people set up their own businesses?
A
- make money - earn a living wage
- non-profit reasons - want to solve a problem
- spot a gap in the market
- being your own boss
- have an idea which you want to exploit
2
Q
Aim:
A
States the overall purposes for the business - the long-term goal.
3
Q
Objectives:
A
Specific, measurable targets to help meet the aims of the business.
4
Q
Mission Statement:
A
A general description of the overall aims of the business; can just be one sentence.
5
Q
What should objectives be?
A
Specific, Measurable, Attainable, Relevant, Time-Based
6
Q
Why should you set objectives in businesses?
A
- for direction
- focus for employees
- helps planning
- measurement of success
7
Q
Financial aims and objectives of businesses that are starting up:
A
- survival
- profit - private companies compete for profit
- market share
- sales and sales revenue
- financial security
8
Q
Non-financial aims and objectives of businesses that are starting up:
A
- social objectives - wants to make a difference, to help
- personal satisfaction
- challenge
- independence - you’re your own boss
- control
- new skills learned
- business awards and recognition
- customer satisfaction
8
Q
Why do aims and objectives differ between businesses?
A
- most businesses want to make a profit
- however NGO’s and non-profit organisations may want to solve a problem and make a difference socially rather than make a profit for themselves
- aims and objectives of a business change, depending on its current stage of development
