Business objectives 1.5.3 Flashcards
What are business objectives?
The quantifiable goals and targets that the business needs to achieve in order to make progress towards the long term aim..
What are aims?
What a business tries to achieve in the long term.
What is profit maximisation?
Make as much profit as possible from goods and services.
What is survival?
A target set focused on keeping the business alive.
What are other business objectives?
- Sales maximisation
- Market share
- Cost efficiency
- Employee Welfare
- Customer satisfaction
- Social Objectives
What is sales maximisation?
Selling as many items as possible regardless of other factors such as profitability.
What is market share?
The proportion of total market sales that a particular firm has. Calculated as:
Sales of firm A/total market share x100
What is cost efficency?
An operational target to minimise the costs of inputs whilst maximising the amount of outputs, without sacrificing quality.
What is employee welfare?
A business objective to look after the economic and personal wellbeing of all members of the workforce.
What is customer satisfaction?
The meeting of customers’ expectations through the provision of a good or service.
What are social objectives?
The desired outcome of a product, often aiming to improve human well being. Support a societal issue. Ethical and social objectives only mean something if the business is willing to sacrifice profits for it.
