Business Aims Flashcards
What’s a aim
Long term goals
What’s a mission statement
Overall vision / purpose
What’s a objective
Short term target
Objective are based off the mnemonic SMART. What does smart stand for
Specific
Measurable
Attainable
Realistic
Timed
6 aims
Survival
Growth
Social responsibility
Corporate image
Concern for the environment
Profit maximisation
Example how aims can cause conflict between stakeholders
Shareholders are more interested in profit improvements and may be unhappy about some profits being given to a worthy cause. Eg: towards social responsibility aims
Managers would want to expand the business which would reduce short time profits. Shareholders could oppose this temporary loss of profit
General private sector aims
Create and improve profit
Grow and expand
Customer satisfaction
Corporate image
General public sector aims
Provide a service
To not make a loss (break even)
General aims for the volunteer sector
To contribute to the community
To provide employment
To relieve social problems
Why are aims and objectives are helpful to business
Defines what a business is and what it aspires to be
A guide for the businesses activity in the future
Provides something for the business to work towards and achieve
Act as a standard to compare progress
Ethical issues with business aims
Slave labour, not giving their employees fair wages
Buying products from places which have bad working conditions, where the workers have been exploited eg: iPhone in china
Products tested on animals eg: lush
Have packaging which is bad for the environment
25p bag charge
