Business objectives(1.5.3)

Question 1

Business survival

Answer 1

aim is to survive initial entry into the market and then generate enough cash flow to remain in business

Question 2

Business survival problems upon initial entry

Answer 2

lack of finance (sales low)
large costs (R&D market research)
market conditions (competitors/fluctuating customer base)

Question 3

Business profit maximisation

Answer 3

following survival a firm will look to maximise their profits

Question 4

Business profit maximisation impact business

Answer 4

stakeholders get an increase dividends
employees may have increase pay roll

Question 5

Business sales maximisation

Answer 5

maximise revenue
price inelastic product raise prices
price elastic product lower prices

Question 6

Business market share

Answer 6

percentage hold a firm has in a market (customer base)
to increase firm may improve/enhance products to gain a competitive advantage

Question 7

Business cost efficiency

Answer 7

refers to a companys ability to produce/market products at lowest cost possible
high competitive markets low costs and compete with low prices

Question 8

Business employees wellbeing

Answer 8

healthy and safe working environment/employees motivated (financial non financial theories)
good quality training/comprehensive benefits/competitive wages

Question 9

Business customer service

Answer 9

high quality products
correct pricing strategy providing excellent service
e.g advice/comfort

Question 10

Business social objective

Answer 10

refers to a firms commitment to addressing social or environmental issues
operates sustainability and build brand reputation
e.g 1.3.1 superdry/fair labour practices ethical sourcing