Business - 1.5 Flashcards
1
Q
business objectives - advantages
A
- increases motivation
- creates clear targets
- decision making is easier
- reduces conflicts
- able to find flaws / improvement
1
Q
business objectives - definition
A
the aims and targets that a business works towards to help it run successfully
2
Q
different business objectives
A
- survival
- maximizing profit
- growth
- increasing market share
- improving the cashflow
3
Q
survival
A
- new / small firms and highly competitive markets
- could force businesses to lower prices and lose profit
4
Q
maximizing profit
A
- private sector firms
- required for further investment
5
Q
growth and expansion
A
- after it passed its survival stage
- can increase salaries and greater job security
6
Q
increasing market share
A
- more market share = bigger portion of the market
- leads to increased customer loyalty and brand image
7
Q
improving cashflow
A
- needed to pay suppliers
- without it, may be unable to operate and earn revenue
8
Q
objectives of social enterprises
A
- social : positive impact on community (eg. job creation, education)
- environmental : taking care of the environment (eg. reduce carbon footprint)
- economic : not only profitable but sustainable as well (eg. able to reinvest)
9
Q
stakeholders - definition
A
- a person / group which has interest in a business for various reasons
10
Q
two types of stakeholders
A
- internal stakeholders
- external stakeholders
11
Q
internal stakeholders
A
- directly involved with the day-to-day running of the business
examples:
- owners
- workers
- managers
12
Q
external stakeholders
A
- outside of the business and arent allowed to run it
example:
- customer
- government
- community
- suppliers
- investors
- creditors
13
Q
owners objectives
A
- profit
- growth (increase in value of business)
14
Q
workers objectives
A
- high salaries
- job security
- job satisfaction
15
Q
managers objectives
A
- high salaries
- job security
- growth (to get more power)
16
Q
customers
A
- safe & reliable products
- value for money
- high quality products
- good service and maintainence
17
Q
government
A
- successful businesses => employ workers => pay taxes => increase country output
- firms to stay within the law
18
Q
community
A
- jobs creation
- environmentally and socially safe products
19
Q
banks
A
- pay interest
20
Q
supplier
A
- timely payments
- regular business
- client satisfaction
21
Q
investors
A
- good return on investment
- growth of business
22
Q
creditors
A
- receive loan with interest
23
Q
how stakeholders objectives might conflict
A
- owners + workers & managers = fight for high salary
- owners + customers = fight bec of product quality (high = expensive)
- government + workers = taxes
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