Business Objectives Flashcards
1
Q
Make a Profit
A
Generating more expenses than revenue.
- Lower expenses and maximise revenue
- Profits can be reinvested, growing business
2
Q
Increase Market Share
A
In order to become more competitive within the industry
- Increase in sales (however, doesn’t always result in an increase in market share)
3
Q
Meet Shareholder Expectations
A
They invest into the business to raise profits, hence they are expected to receive dividends
4
Q
Fulfil a Market Need
A
Providing goods and services which meet the desires of a group of customers
- Develope customer loyalty
- ‘Creates more revenue’
5
Q
Improve Efficiency
A
- Must have productivity
- Maximise time, money, effort, employees, resources
- Producing something without wasting resources
6
Q
Improve Effectiveness
A
A business must continuously set targets to achieve to be competitive
Can also be small things:
- Employee performance
