Buisiness Aims Flashcards
Define mission statement
The vision or overall goal for the organisation.
Example: Young Enterprise – Learning by Doing.
Define business aims
The goals which a business sets for itself so that it can measure how successful it has been in reaching its targets.
Why do businesses need aims?
Aims are helpful to a business because they:-
- Define what a business is and what it aspires to be
- Serve as a guide for the business’s activity in the future
- Provide targets for the business to achieve
- Act as a standard against which the business may compare its progress
- explain to others what the business is working to achieve
- help in the decision making process
The business aims should be:
Specific - state clearly what you want t achieve
Measurable - be able to measure what you want to achieve (as a %)
Attainable - is the completion of the obj. possible?
Realistic - can you meet the obj. with current recourses
Timed - when do you want to achieve your goal?
What aims do businesses have?
Survival - when the total costs are equal to the revenue, Important when the business first starts up
Profit and turnover - the rewards to the owner for risking capital in the business
Growth - most large firms started as a small business, growth may lead to an increase in long term profits
Corporate image - wants to be thought of highly
Concern for the environment - seeks to produce environmentally freidnly products
How might aims of a business be In conflict?
On occasions a business may find that its aims may be in conflict with one another. Keeping one aim can sometimes cause tension between the stakeholders or even with another aim.
What are business ethics?
Business ethics are the moral principles applied to the running of a business. These standards
• Are sometimes set by a Code of Conduct or a Code of Practice agreed by the industry as a whole
• May be a set of principles used by an individual company
A company’s business ethics will often be included in their business aims. Some companies publish their business ethics and use them as part of their marketing.
What are business morales?
Morals are concerned with the distinction between right and wrong.
- Caring for the environment - planning trees, recycled products/packaging, selling biodegradable products
- paying employees fair wages and provide good working conditions
- treat all employees equally
- treat all customers equally
What are ethical and moral issues associated with business aims?
Business ethics
Business morals
Environmental issues - care for the environment
Employee working conditions - most businesses see their employees as their most valuable assets and provide good working conditions for them
Equality - businesses aim to treat all costumers equally
Social responsibility- supporting and selling fair trade products
Public sector - many businesses set up with the aim to provide a public service rather than make a profit.
What is the difference in aims between private and public sector?
Private sector (Sole trader - partnership - limited companies LTD & PLC) -to create and improve profit -to grow and expand - to give customer satisfaction -to have a good corporate image
Public sector
- to provide an essential service
- to break even (survive)
Social Enterprise
- to contribute to the community
- to relieve social problems
