1.5.3 Business objectives

Question 1

definition of business objectives

Answer 1

a goal or an aim that a business wants to achieve, the best objecitves are SMART and not vague so that everyone in the business knows what direction the busienss is going

Question 2

what does SMART stand for?

Answer 2

Specific
Mesurable
Achievable
Realistic
Time bound

Question 3

what is survivial as a business objective?

Answer 3

reach a sustainalbe level of sales that sllows the business to reach its break-even point (total revenue=total costs)

Question 4

what is Profit maximisation?

Answer 4

when a business wants to make the most profit possible from a given amoujnt of recources

Question 5

when is profit maximasation needed?

Answer 5

to help a business to maintain high levels of product development and innovation

Question 6

what is shrinkflation

Answer 6

where the manufacturer keeps the price the same bur makes the product smaller instead of passing on a price rise which would have a negative impact on demand

Question 7

difference between sales and profit?

Answer 7

Sales refer to the total revenue a business generates by selling goods or services.
Profit is what remains after subtracting all the costs (expenses, taxes, etc.) from the sales revenue.

Question 8

other sales objectives

Answer 8

sales maximisation, market share, cost efficiency

Question 9

definition of market share

Answer 9

the % of a market that a business has in terms of revenue or units sold

Question 10

how can cost efficiency be achieved?

Answer 10

ECONOMIES OF SCALE, paying minimum wage workers, subcontracting where econocally viable, lean production or construciton where material time and process waste is eliminated, lower quality and price of product

Question 11

what is Economies of scale?

Answer 11

cost advantages that businesses gain when they increase production. As they make more goods, the cost per unit typically decreases due to factors like bulk purchasing, specialization of labor, and spreading fixed costs over more units.

Question 12

Employee welfare examples

Answer 12

external: medical insurance, housing
internal: canteen, toilets, uniform

Question 13

what is customer satisfaction?

Answer 13

identify and understand what customer wants and then provide this

Question 14

social objectives examples

Answer 14

reducing impact on environment, helping society, fair wages, doing things ethically, shouldn’t be cheque approach (not just give them money)