business objectives Flashcards
define objectives
a statment of a specific target to be achived it should be smart
what does smart stand for
specific measurable achivable realistic time specific
what are the business objectives
survival
profit
growth
market share
corporate social responsibility
explain survival
many buisness fail in the first or second year of trading so survival is a very important short term objective once they established they can focus on long term objectives
explain profit
they aim to produce and sell the levekl of output were there is the greatest difference between revenue and total cost
explain growth
the business decides to expand its size to increase output may benifit from economies of scale this will reduce the cost of producing each item and help to increase firm competivness revenue and profit
explain market share
as a business grow it may achive large share of the market share often benefit a business in that is help develop dtrong brand image which make it easier to sell
define csr
business taking responsibility for the impact their aCTIVITIES might have on society and the enviorment
pressure group
a group of like minded people that puts the pressure on the business and goverment to change their policies to reach a predetermine objective
why csr become an important objective
the activity of pressure group
the media which create sgreater awarness
the role of terde union
the role of gopverment law
define social enterprise
a business with social objectives that reinvest most of its profit back into the business or into benefiting society at large
what are social enterprise objectives
benifits employee
profit reinvest in the business
relates to the need of community
care of the enviorment
define stake holder
an induvidual or group which has an intrest in the businsess because they are affected by it activities and decisions
what are the 2 types of stake holders
internal stake holders
external stakeholders
what are internal stake holders
owner
manager
employee
what are the external stake holders
lenders
supplier
customer
goverment
local community
what is the role of internal stake holders
have an interest in the decision and activities of the business
what is the objectives of owner
to recive high return
dividends as reward for risking their investment in the benifit to benefit from an increase in share value
what is the objectives of manager
to have job satisfaction
to recive salary increase and bonus
what is the objective of employee
to have job security
to recive a fair wage
what is the objective of lenders
to receive intrest payment when due
to have borrowing repaid by the due date
what is the objective of supplier
to recive prompt payment for goods supplied on credit
to be treated fairly and not be forced to reduce their price by business with strong buying power
what is the objectives of customer
to recive quality goods
to be charged a fair price which give value for money
what is the objective of goverment
to be paid correct amount of tax on time
to have minimal spending on unemployement benifits
what is the objectives of local community
to recive benifits for the local economy such as employeement
to avoid negetive of business activities such as pollution
what are the objectives of private sector and public sector enterprise
accessible
affordable
open to all
explain accessible
they can be used by everyone regardless of their location or income
explain affordable
they must be cheaper than if the service was provided by the private sector the service may even be free at the point of use
explain open to all
they must be available
to everyone regardless of their income class, ethnicity, religion and so on
