business objectives (ch1)

Question 1

make a profit

Answer 1

profit - remaining amount of money after expenses have been deducted from the revenue

Question 2

increase market share

Answer 2

market share - percentage of total sales the business recieves

Question 3

fulfill market needs

Answer 3

market needs - ensuring customer’s interests and expectations are met

Question 4

fulfill social needs

Answer 4

social needs - ensuring the society and community’s expectations are met

Question 5

meet shareholders expectations

Answer 5

shareholder expectations - capital gain (shares increase in value), earn more divedends (proportion of profit that goes towards shareholders), voting rights at annual general meeting (AGM)

Question 6

SMART principle

Answer 6

objectives or goals that are specific, measurable, attainable/achievable, relevant/realistic and timely or time-bound
thus, businesses can be clear about what they would like to achieve and aim for

specific - objectives are set and explicit
measurable - outcome and objective can be measured
attainable/achievable - objective can be reached
realistic/relevant - objectives can be reached within time frame
timely or time bound - objectives will be reached within a certain period of time

Question 7

vision statement

Answer 7

statement that outlines the aspirations and values of the business || the purpose or reason the business exists

e.g. Virgin Australia states that it wants to revolutionise air travel through seamless experience and excellent service

Question 8

values statement

Answer 8

outlines what the organisation sees as its corporate values