1.5.3 Business objectives Flashcards
1
Q
What are objectives?
1
A
- Targets set to ensure whole business is working to the same goals
2
Q
What is a strategy?
1
A
- A plan for achieving the objectives
3
Q
To gain the most from objectives what should they be?
5
A
- Specific
- Measureable
- Achievable
- Realistic
- Time-bound
4
Q
What are some examples of business objectives?
8
A
- Survival
- Profit maximisation
- Sales maximisation
- Market share
- Cost efficiency
- Employee welfare
- Customer satisfaction
- Social objectives
5
Q
When may a firm have the objective to maximise sales?
2
A
- Rapid growing market
- No care of cost = expect profit once market growth slows/>comp
6
Q
What are the advantages of increasing market share (LT)?
2
A
- ^Distribution
- Prevent new entrants
7
Q
What is meant by employee welfare and what would this objective entail?
2
A
- Looking after staff, treat well
- Develop using training and internal recruitment
8
Q
When may a firm have the objective of customer satisfaction?
1
A
- Attracting new customers/losing existing = ^expensive
9
Q
When may a firm have the objective of employee welfare?
1
A
- Comp advantage e.g. customer service/innovation
