business objectives Flashcards
What are the different Business Objectives ?
To make a profit
To increase market share
To improve efficiency
To improve effectiveness
To fulfil a market need
to fulfil a social need
To meet shareholder expectations
Define the term business objective
A business objective is a goal which an organisation sets out to achieve in a given time period. A business objective may include to ‘increase profit’ or to ‘fulfil a social need’.
What is market share
It is the business proportion of total sales in a market or an industry.
What does to improve efficiency mean
it means to maximise outputs generated from inputs by using innvoative processes and technologies.
What does effectiveness mean
The degree to which a business has achieved its stated objectives
what does to fulfil a market need mean
It means to provide a good or service that is not otherwise available in the market
What does to fulfil a social need mean
It means to provide a good or service to make the world a better place
to meet shareholder expectations
shareholders expect to make a return on their investment
vision statement
what the business hopes to be
Mission statement
Reason for a business’s existence, its purpose
what are strategies
They outline how the business will attempt to achieve the objectives
what are kpis - key performance indicators
They are specific criteria used to measure efficiency and/or effectiveness of the business’s performance
ExamPLE kpis
to make a profit- net profit figures- means either the business is earner more revenue or is reducing expenses
to increase market share- Percentage of market share- greater proportion of sales
to fulfill a social need- level of wastage-
Explain the importance of business objectives.
Business objectives are important because without them a business would have no direction and nothing to aim towards. Business objectives provide a business with a path to follow, increasing its chances of being successful.
