Business Objectives Flashcards
What is the definitition of business objective
Business objectives are the goals a business intends to achieve. They provide direction for a business
What is the definition of ‘to make a profit’
Generating more revenue than expenses, this can be distributed to owners and shareholders
What is the definition of ‘to increase market share’
Market share is a business’s percentage of total sales within an industry.
What is the definition of ‘To improve EFFICIENCY’
Is how productively a business uses its resources when producing a good or service. i.e – Min inputs vs max output
What is the definition of ‘To improve EFFECTIVENESS’
Is the extent to which a business achieves its stated objectives.
What is the definition of ‘To fulfil a MARKET NEED’
To fulfil a market need is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other businesses in the same industry.
What is the definition of ‘To fulfill a SOCIAL NEED’
To fulfil a social need is improving society and the environment through business activities.
What is the definition of ‘To meet SHAREHOLDER EXPECTATIONS’
Shareholders invest a sum of money into the business to raise profits. Hence, as part owners of the business they are expected to receive income in the form of dividends.
