Business goals

Question 1

Business goals (6)

Answer 1

Profitability
Market share
Employment
Societal Needs and wants
Sustainability
Growth

Question 2

PROFITABILITY GOALS

Answer 2

Involves Revenues and Expenses

Need to increase sales (revenues) and reduce expenses to improve profits

Question 3

MARKET SHARE

Answer 3

Is the percentage of the industry that a business controls

To improve: offer more products, lower prices, increase advertising, appeal to larger demographic

Question 4

EMPLOYMENT

Answer 4

A business’s staff is the most valuable asset to a business.

Creating a system of employee satisfaction and loyalty will improve employee retention.

Employee’s should feel appreciated and motivated. This will improve productivity and increase profitability.

A business with a good employment reputation will attract more skilled qualified employees.

Question 5

SOCIETAL NEEDS AND WANTS

Answer 5

The needs of society must be met.

A careful balance of profits and goals need to be met.

A NEED is a basic human requirement. Eg food

A WANT is desired to fulfil a need.

Question 6

SUSTAINABILITY

Answer 6

Needed for a business to achieve longevity - long term investment

Consumer demand - ethical and sustainable products
Reputation - customer support and loyalty
Innovation - new products
Stakeholders - attract and retain stakeholders
Resource efficiency - streamline processes in operations - water, energy, …

Question 7

GROWTH

Answer 7

Future direction and opportunities

Increase market share and profits

Question 8

Stages of a goal

Answer 8

Goal
Objective
Strategy
Tactic