aims and objectives Flashcards
what are the 4 business objectives
survival
profit
growth
provide a service
how might a business change (4)
might become bigger or smaller
sell different product
sell in a different market
sell in a different way
why might a business change (4)
different owner
different motivations
change in market
different ecconomic conditions
what is a stakeholder
people who have in interest in the business
who are the main stakeholders (6)
owner employees customers suppliers government local community
what are the 2 types of stakeholder
internal - owners and people who work in the business
external - they work outside of the business
what is the role and objective of internal and external stakeholders
owner - provide finance and make profit
employees produce goods have a job earn an income
customers - buy goods and services
supplier - sell goods for resale
government - help business to grow employment resulting in more tax
local community - provide workers and local area prospers
what are the benefits and problems for stakeholders
owner earns profit is successful but looses money if not
employee has a job but can be made redundent, treated unfairly or replaced by machinery
customer gets a good product at a good price but could get poor quality and it is expensive
supplies sell goods and earn profit but if company doesnt pay they loose money
government receive tax but are expected to help if business is in trouble
community jobs are created and people have money to spend in local area but it can bring pollution and congestion
How is business failure indicated (3)
losses, low sales, poor quality goods
how is business success indicated (3)
measured by profit, growth in sales, returning customers
how do stakeholders influence the success of failure of a business
owner - invests to help growth but may not invest enough
employee works hard to produce good quality product but could produce poor quality, demand high wages, cause disruption
customers - purchase and reccomend goods but can buy from competitors or give bad publicity
supplies - provide supplies promptly and competitively but can provide poor quality and delay supply
govenment - can give grants and be a customer but can increase tax and prevent expansion
local community can be customers and support plans to develop but can also oppose business plans and increase legal costs
what are the 2 types of growth in a business
organic and external
what is organic growth
internal growth of company eg growth of sales how much output it can do
what is capacity
how much output it can do
4 ways organic growth can take place
increase output- use resources more efficiently
gaining new customers - reduce prices open new shops better marketing
increase market share- increase sales or take business from other firms
develop new products - copy or buy ideas
