business objectives

Question 1

a vision statement

Answer 1

an inspirational declaration of what an organisation strives to be and wants to achieve in the distant future it usually includes an organisations core values it is meant to act as a clear guide for key stakeholders when planning and implementing current and future corporate strategies

Question 2

mission statement

Answer 2

a mission statement is a motivating declaration of an organisation’s core purpose (why it exists), identity (who they are) and focus (what they do) it is therefore a written declaration that normally remains unchanged over time it is waaay narrower and more specific than a broad and abstract vision statement

Question 3

mission and vision statement are often criticised for

Answer 3

1) being too vague
2) being based on public relations (they try too hard to make an organisation look good that what they actually do doesn’t align with it)
3) being unquantifiable (not measurable goals but simply the aspirational purpose)
4)vision statements are very long term and may not ever materialise
5)virtually impossible to really analyse or disagree with and thus ignored and or not taken seriously

Question 4

business objectives

Answer 4

the clearly defined and measurable targets of an organisation used to achieve its overall goals essential for all businesses so that people know where they are striving to go or what they are trying to accomplish they give ppl a sense of common purpose thus promoting a sense of belonging and team spirit and they enable managers and entrepreneurs to measure progress

Question 5

SMART

Answer 5

Specific
Measurable
Agreed
Realistic
Time specific

Question 6

tactical//short term objectives

Answer 6

easier to change or reverse than strategic objectives they are specific targets with definitive timelines

Question 7

strategic//long term objectives

Answer 7

targets that the entire organisation is aiming to achieve, requires a greater investment in human and financial resources than tactical and operational objectives usually related to what the owners of the business want to focus on like business survival, growth, profit maximisation

Question 8

common business objectives

Answer 8

growth, profit, protecting shareholder value, ethical objectives

Question 9

growth

Answer 9

striving to grow in order to gain from the benefits of growth refers to an increase in the size of the business and its operations

Question 10

the benefits of growth:

Answer 10

> higher sales revenue and profit

> economies of scale (there are cost savings benefits for firms as they grow larger such as being able to purchase raw materials in bulk at a discounted price from suppliers)

> reduced risks (larger companies are less vulnerable to changes in the external environments and lawsuits and all that blahblahblah)

Question 11

internal growth organic growth

Answer 11

when a company expands without the help of an external partner firm and instead uses its own resources to do so

for example using retained profits to invest in production facilities in new locations

Question 12

external growth inorganic growth

Answer 12

expansion of a business by using a third party resources and organisations rather than relying on internal sources and activities

Question 13

methods of measuring the growth of a business

Answer 13

sales revenue, sales volume, profits, customers, number of employees, market share

Question 14

sales revenue

Answer 14

the momentarily value of the products that the business has sold per time period

Question 15

sales volume

Answer 15

the number of products that the business sells per time period

Question 16

profits

Answer 16

the positive difference between a firms sales revenue and its costs of production over a time period

-reward for owners and investors
-internal source of finance to develop business

Question 17

customers

Answer 17

the more customers that the business has the larger it tends to be

Question 18

number of employees

Answer 18

size of the workforce, the more ppl hired by the business the bigger it is

Question 19

market shares

Answer 19

measures the firms sales revenue as a proportion of the whole industry’s sales revenue

Question 20

customers

Answer 20

the more customers that the business has the larger it is

Question 21

why areobjectives important

Answer 21

-give people a common purpose
-sense of purpose and direction
-motivate employees and raise labour activity
-make it easier to measure success

Question 22

protecting shareholder value

Answer 22

Protecting shareholder value is ultimately the responsibility of the company’s chief executive officer (CEO) and board of directors, based on their strategic plans to earn a healthy return on the capital invested in the business.

Question 23

ethiiiiiics

Answer 23

what is thought to be right and what is considered to be wrong, i.e. morality from society’s point of view. they are based on the values of the organization, in accordance to society’s norms and beliefs.

Question 24

business ethics

Answer 24

the guiding principles that provide moral guidelines for the conduct of business activities. ethical objectives are organizational goals based on moral guidelines in order to influence or determine business decision-making. ethical decision-making considers more than just calculating costs, benefits and profits. this means such businesses act morally towards their various stakeholder groups, including employees, managers, customers, shareholders, suppliers, financiers, local community (including consideration for the natural environment), the government, and even competitors.

Question 25

examples of ethical objectives

Answer 25

-good wellbeing of employees and workers
-honesty and fair treatment (while dealing with customers and employees)
-adapting green technologies
-usage of socially acceptable responsible advertising and corporate governance
-pursuit of sustainable growth strategies
-respecting and observing intellectual property rights of others

Question 26

advantages of business ethic objectives

Answer 26

-improved staff morale
-higher sales revenue
-improved image
-increased customers loyalty
-increased employee loyalty
-avoiding fined and penalty

Question 27

corporate social responsibility (csr)

Answer 27

refers to the value, decisions, and actions taken by a business that impact society in a positive way. It is about an organization’s moral obligations to its stakeholders, the community, society as a whole, and the natural environment. CSR is about an organization using ethical objectives to commit to behaving in a socially responsible way towards its internal and external stakeholders, not just to the owners or shareholders of the business.