1a-Business Objectives Flashcards
Q: What are business objectives?
A: Business objectives are targets that guide operations and drive growth.
Q: Why are business objectives important?
A:
Provide a clear focus for decision-making.
Motivate employees by setting goals.
Help businesses measure performance.
Ensure that strategies align with the company’s mission.
Q: What makes an objective SMART?
A:
Specific – Clearly states what is to be achieved.
Measurable – Expressed in quantitative terms.
Achievable – Possible with available resources.
Realistic – Matches business capacity.
Time-specific – A clear deadline is set.
what is the financial objective
Survival
Survival
Keeping the business running, especially in its first year or during crises.
Camping Sous les Étoiles in France focused on survival during the 2020 pandemic.
what is the financial objective
Profit
Profit
The difference between revenue and costs; reinvested or distributed.
Brewery de Blaugies maximised profits to fund expansion.
what is the financial objective
Sales
Sales
Increasing the volume of products sold to gain market share.
Le Creuset expanded sales across Europe by opening more stores.
what is the financial objective
Market share
Market Share
The percentage of total sales a business holds in its market.
Ediya Coffee increased outlets in South Korea to compete with Paris Baguette.
what is the financial objective
Financial security
Financial Security
Ensuring stable income rather than maximizing profit.
Reema Koch runs a small guesthouse in Malta in summer and works for charities in winter.
what are the 5 financial objkective
- Survival
2.Market share
3.Fiancial security
4/Profit
5.Sales
what is the non financial objective
Social
Social
Providing high-quality services to a community.
TOMS Shoes donates a pair for every one sold.
what is the non-financial objective
Personal satisfaction
Personal Satisfaction
Business owners find fulfillment in their work.
Laura Hirsch founded a forest school for preschoolers in Germany.
what is the non-financial objective
Challenge
Challenge
Owners enjoy problem-solving and learning new skills.
Kristine Bonnici expanded her design business while gaining business qualifications.
what is the non-financial objective
Independence & control
Independence & Control
Entrepreneurs want autonomy over decisions.
Vinay Patel founded a talent agency in Mumbai after redundancy.
what are the 4 non financial obj
1-Social
2-Personal satisfaction
3-Challenge
4-Independence & control
Q: How can a business’s objectives change over time?
A:
Growth Stage: From survival → profit maximization.
Retirement of Owners: From expansion → financial security.
New Leadership: Sets new priorities (e.g., social responsibility).
Market Leader Status: Switches focus from market share → maximizing profits.
What external factors influence business objectives?
Market conditions
Market Conditions
Competition levels and industry growth rates can shift priorities.
Maxi’s Fahrschule in Lübeck lowered prices to retain customers.
What external factors influence business objectives?
Technology
Technology
Innovations can cut costs and increase sales.
Vegan Junk Food expanded profits with delivery services.
What external factors influence business objectives?
Legislation
Legislation
New laws can increase costs or force businesses to change strategies.
The EU’s plastic ban forced SEF Packaging to switch to sustainable materials.
What external factors influence business objectives?
3
1-Market Conditions
2-Technology
3-Legislation
