Aims and Objectives Flashcards
What are business aims?
Strategic goals of a business, such as growth or survival.
What are business objectives?
Specific steps to achieve business aims, like increasing sales by 5% in a year.
Why do businesses set objectives?
To measure performance, motivate workers, and guide decision-making.
What is survival as a business aim?
The goal of reaching sustainable sales to break even, especially in the first year.
How can a business maximize profit?
By increasing revenue and reducing costs.
What does business growth involve?
Selling more goods/services, expanding production, or entering new markets.
What is market share?
The percentage of total sales in a market held by a business.
How can businesses increase market share?
Through promotions, discounts, and making products more appealing.
What is customer satisfaction as an objective?
Ensuring no returns or complaints to maintain quality service.
What are social objectives in business?
Goals focused on social or environmental benefits, like helping the homeless.
What are ethical objectives?
Business goals that prioritize ethical decisions, like fair wages and sustainability.
What is shareholder value?
Ensuring shareholders receive a return on their investment.
Why do different businesses have different objectives?
Factors like size, competition, and business type influence objectives.
How do business objectives change over time?
As businesses grow, they shift from survival to expansion and profit maximization.
How can objectives help judge business success?
Businesses can measure progress, like achieving a 5% market share.
