business goals - term 2

Question 1

what are business goals

Answer 1

Agoalis a desired outcome (target) that an individual or business intends to achieve within a certain time frame.

Success in achieving business goals is often determined by the amount of planning. Detailed planning increases the likelihood of successfully achieving business goals.

Question 2

what are SMART business goals?

Answer 2

specific, measurable, achievable, realistic, timebound

Question 3

what does specific mean (smart goals)

Answer 3

Goals should be straightforward and emphasise what the business wants to happen.

Question 4

what does measurable mean (smart goals)

Answer 4

Decide on goals whose progress can be measured so the business owner can see the change occur. This helps the business stay on track.

Question 5

what does achievable mean (smart goals)

Answer 5

Goals need to be challenging but not be too far out of the business’s reach, otherwise the business owner and employees will become unmotivated due to the lack of success.

Question 6

what does realistic mean (smart goals)

Answer 6

The goals must represent something that the business owner and employees are both willing and able to work towards.

Question 7

what does timebound mean (smart goals)

Answer 7

The goals must have deadlines and sub-deadlines attached to them, otherwise the commitment is too vague.

Question 8

what is the importance of goals (SMMC)

Answer 8

Serving as targets

Measuring sticks

motivation

commitment

Question 9

Serving as targets (importance of goals)

Answer 9

With goals, managers at all levels would find it easier to make coordinated decisions because they understand what the business is trying to achieve.

Question 10

measuring sticks (importance of goals)

Answer 10

specific goals act as abenchmarkagainst which the business can measure its performance — that is, the actual outcome is compared with the planned goal.

Question 11

motivation (importance of goals)

Answer 11

Good quality goals represent a challenge — something to aim for. They act as a motivating force. Employees will gain satisfaction when they successfully achieve a challenging goal. Goals also provide managers with a basis for rewarding performance, which in turn acts as a motivator.

Question 12

commitment (importance of goals)

Answer 12

Getting an employee to agree to achieve a goal — or better still, having the employee participate in the goal-setting process — gives that employee a personal stake in the success of the business

Question 13

what are level goals and objectives

Answer 13

strategic goals, tactical objectives, operational objectives

(review diagram in workbook and on connect)

Question 14

strategic goals (level goals and objectives)

Answer 14

• determined by senior management
• broad aims
• long term (years)
• applied to a business as a whole

Question 15

tactical objectives (level goals and objectives)

Answer 15

• determined by middle management
• specific aims
• mid-term (months)
• necessary to achieve the businesses strategic goals

Question 16

operational objectives (level goals and objectives)

Answer 16

• determined by front line management
• specific aims
• short-term (days/week)
• necessary to achieve tactical objectives and strategic goals

Question 17

what is market share

Answer 17

• refers to the business share of the industry expressed as a percentage
• it is calculated by dividing a businesses sales from the market by the total sales of ll businesses in the industry

Question 18

what is growth

Answer 18

Internal growth:
- could involve employing more people, increasing sales and establishing more outlets

External growth:
- achieved by merging or acquiring other businesses

merger = combining two businesses to get more market share and to get more clients

Acquisition = where one business buys another business because they think their successful business will be able to expand successfully by acquiring another business

Question 19

What is Share price

Answer 19

companies need to maximise the returns of their shareholders which is achieved by keeping the share price rising allowing the company to pay healthy dividends

Question 20

social

Answer 20

businesses can develop social goals and adopt strategies benefiting the community while achieving financial goals

community service: businesses can sponsor sport teams or local schools wich will give back to the community whilst they advertise the sponsoring allowing for marketing

provision of employment: small businesses can hire locally benefiting community society

social justice: ensure employees and other community members are treated equally and fairly

Question 21

environmental

Answer 21

businesses should consider their impact to the environment to create awareness within society

• businesses are adopting practices of ideas that are environmentally friendly these businesses adopt a new attitude to developing products and ideas that are sustainable
• sustainable development refers to how society and businesses are developing ensuring sustainability

Question 22

achieving business goals

Answer 22

• business managers have a range of goals because they have a range of different stakeholders who have different needs
• thus in practice, most business managers have a mix of goals
• for managers however, its not always easy to get the right balance of goals
• sometimes managers see conflict in these goals

Question 23

achieving a mix of goals

Answer 23

achieving an increase in market share may only be achieved at the expense of maximising profits in the short term it may require extensive advertising which increases expenses this lowering profits untill more products are sold

Question 24

impacts of staff involvement

Answer 24

• staff involvement employees in the decision-making process and giving them the necessary skills and rewards
• employees can share the same vision
• employees who work in successful businesses actively work towards the success of the business

Question 25

list the different ways managers can involve staff in order to achieve business success (MMIT)

Answer 25

Motivation
Mentoring
Innovation
Training

Question 26

importance of innovation (MMIT)

Answer 26

Business can obtain competitive advantage if it innovates successfully

Increase levels of employee engagement and job satisfaction

Develop new products – leading to increased revenue

Question 27

Strategy to achieve innovation (MMIT)

Answer 27

rewards given to employees with innovative ideas that become profitable

a trustful management that does not excessively control — micromanage — people

sufficient financial, management, human and time resources to achieve goals

Question 28

importance of motivation (MMIT)

Answer 28

Motivated staff increases morale and business productivity

Overall success of the business largely depends on motivated and skilled employees who are committed to its goals

Decreased costs associated with high staff turnover

Question 29

strategies to achieve motivation (MMIT)

Answer 29

Offer training
Delegate responsibility
Make clear expectations
Communicate regularly with staff
Monetary benefits (bonuses)
Provide interesting work
Show respect and courtesy
Recognise achievements

Question 30

importance of mentoring (MMIT)

Answer 30

it ensures access to mentors for all employees, regardless of levels of experience, backgrounds, gender or ethnicity

it assists with the training and development of all employees
provides career and psychological support

helps strengthen their dedication and commitment to the firm

Question 31

Strategy for mentoring (MMIT)

Answer 31

Train mentors to ensure they can effectively teach and guide new staff

Develop mentoring program by offering tutoring, coaching and modeling acceptable behaviour.

Question 32

Importance of training (MMIT)

Answer 32

improves employee productivity
Employees participate more effectively in work teams

Workforce can adapt to a rapidly changing technological environment more effectively

Increases possibility of staff gaining promotion and therefore their commitment to the business is greater

Question 33

Strategies to achieve training

Answer 33

• send employers to appropriate conferences and seminars
• develop an informal on-the-job training program for new staff