Business objectives

Question 1

What are business objectives

Answer 1

measurable targets of how to achieve business aims

Question 2

How may a business achieve profit maximization?

Answer 2

• maximise turnover

- minimse costs

Question 3

What is a big advantage from growth?

Answer 3

achieving economies of scale meaning the can be more efficient and get better value from their resources

Question 4

when may survival be priority for a business?

Answer 4

• new business getting established
• times of recession
• overcoming external factors e.g aftermath of a terrorist attack

Question 5

A business may want to maximise

Answer 5

quality

Question 6

what is meant by quality?

Answer 6

Quality is about meeting the minimum standard required to satisfy customer needs

Question 7

Why may a business may want to help the society and why may they want to do this?

Answer 7

increase their profit and growth. May do this buy sponsoring charities/ good causes

Question 8

what is meant by profit satisficing

Answer 8

try to make enough profit to keep the owners comfortable - often aim of smaller business who do not want to work long hours

Question 9

why may businesses have an objective of market share?

Answer 9

want to be leaders in their field - believe this will ultimately lead to profit maximisation

Question 10

what is a smart objective?

what may it do to employees? what can it measure?

Answer 10

objectives that give businesses a clearly defined target. can motivate employees. enables business to measure progress towards its stated aims

Question 11

Define each letter in SMART

Answer 11

S – Specific – objectives are aimed at what the business does
M - Measurable – the business can put a value to the objective
A - Agreed by all those concerned in trying to achieve the objective
R - Realistic – the objective should be challenging, but it should be able to be achieved by the resources available
T- Time specific – they have set the objective for October 2017