3.1.1 - corporate objectives

Question 1

profit maximisation

Answer 1

generating more revenue or reducing costs in order to increase profits

Question 2

how to reduce costs

Answer 2

• eliminate waste
• automation of processes
• cutting down overheads

Question 3

how to increase revenue

Answer 3

• expanding market share
• increase prices of goods
• improve sales efficiency

Question 4

revenue growth

Answer 4

• the focus on increasing the total income generated by a business
• step one: analyse market demand
• step two: develop new products/services
• step three: expand customer base

Question 5

market share

Answer 5

• capturing a larger portion of the target market than competitors
• differentiation through quality
• differentiation through cost
• differentiation through marketing

Question 6

cost efficiency

Answer 6

• minimising the costs of production and operations while maintaining or improving the quality of goods and services
• helps businesses stay competitive and increase profitability
• automation of production
• efficient use of energy
• employee productivity

Question 7

environmental sustainability

Answer 7

• focuses on eco-friendly practices that promote environmental protection and conservation
• switching to renewable energy sources
• implementing recycling programs
• reducing carbon footprint

Question 8

benefits of environmental sustainability

Answer 8

• decreases environmental impact
• improves brand image
• attracts more socially responsible customers

Question 9

disadvantages of environmental sustainability

Answer 9

• higher upfront costs
• challenging to find eco-friendly suppliers
• may encounter resistance from employees or shareholders

Question 10

social responsibility

Answer 10

• engaging in ethical and socially responsible actions that benefit society
• fair trade practices
• charitable donations
• community engagement

Question 11

benefits of social responsibility

Answer 11

• improves brand image
• increases customer loyalty
• enhances employee morale

Question 12

risk management

Answer 12

• identifying potential risks to a business and mitigating them before they become major problems
• insurance
• business continuity plan
• risk control measures

Question 13

strategic planning

Answer 13

• involves setting goals, identifying resources, and allocating resources based on priorities
• step one: define goals and objectives
• step two: identify strengths and weaknesses
• step three: determine strategies and action