business objectives

Question 1

corporate(overall) objectives 🧭

Answer 1

•clear sense of direction.
•coordinating business operations.
•setting functional objectives.

Question 2

functional objectives

Answer 2

Each department is given its own targets.
•Designed to achieve corporate objectives.
•Used to design and coordinate operations.
•Used as key performance indicators (KPIs)

Question 3

survival(corp objective)

Answer 3

how much money is required to survive one year.
•minimum level of sales to cover all costs.
•minimum number of staff needed to operate.
•minimum levels of stock bought to preserve cash flow.

Question 4

profit satisfying objective 😁💵

Answer 4

shareholders agree a ‘good enough’ level of profit they are happy to receive from business

•Agree the required level of satisfaction.
•Acceptable percentage of profit or share dividends.
•Set functional objectives to achieve agreed levels.

Question 5

what is profit maximisation 🐝

Answer 5

ensures productivity is at its most efficient and its price levels are at a premium
•pay shareholder dividends.
•maintain credibility.
•achieve maximum productivity

Question 6

growth maximisation ⬆️📈🦘

Answer 6

Growth maximising helps an organisation strengthen its position against competitors
•increase market share.
•expand products/services.
•retain profit to fund expansion.

Question 7

diversification objectives 🏬🛟💵

Answer 7

•growth,new markets/product/services
•attracting financial investment.
•achieving economies of scale(

Question 8

length of objectives

Answer 8

Short term – achieved within one year.
•Medium term – achieved within five years.
•Long term – achieved within five to ten years based on achieving medium-term goals.

Question 9

survival strategies 🔥💰

Answer 9

•Save cash, for better liquidity
•Cost-cutting actions – lay off staff/ cheaper suppliers.
•Pivot activities – new products/services/markets.

Question 10

profit max stragerties📉💵

Answer 10

•reduce costs.
•increase prices.
•increase sales
•systems to increase order efficiencies.

Question 11

growth max stragerties 👶

Answer 11

market penetration/expansion
•product development.

Question 12

diversification strategies 🌎🌎🫁

Answer 12

•organic growth – improve business normally
•acquisitions – taking over another company.
•mergers – two businesses agree to join together.

Question 13

point of stragerties

Answer 13

roadmap for achieving goals

destination – where it’s going.
•plans the journey to get there.
•actions needed to keep going.
•milestones to keep on track.
•key performance indicators to check if it’s a job well done.