Business objectives Definitions Flashcards
Vision statement
a long-term goal, a dream or understanding of what the future should look like
Mission statement
a short statement that defines what an organisation does right now in order to achieve its vision
Value
all the benefits a business creates for the stakeholders involved
Business objective
a stated outcome that the business aims to achieve
Growth
the expansion of a business in terms of revenue, profit, bumber of employees or locations, or another important metric
Revenue
the income that a business generates
Unit cost
the cost of producing a single unit of output
Value extraction
the capturing of value from other stakeholders(either outside or inside the business)
Investment
spending by a business on non-current (fixed) asssets
Corporate Social Responsibility
a self-regulating business midel that helps a compnay be socially responsible to itself and its stakeholders and improve the society and environment
(Re)generative business
a business that aims to strengthen its social and environmental ecosystems by creating opportunities for other businesses and communities to develop, and by restoring the natural environment
Net-positive
an attribute given to entities with more positive impact than negative(generally in a specific domain)
Net-negative
an attribute given to entities with more negative impact than positive(usually referring to carbon emissions)
Biomimicry
the process of mimicking nature’s forms, processes and systems to solve human problems
Product portfolio
all the goods and services that a business offers
Strategy
a plan that an organisation creates in order to reach a specific objective
Linear production
the process of taking resources from the Earth, making products with them, and then disposing of the products(sometimes referred to as a take-make-waste system)
Circular production
a production model that reduces waste by ensuring that the outputs of the production system feed back into the system as inputs
Circular business model
a business model where systems feed back outputs as inputs and waste is minimised(similarly to nature)
Tactic
a small(er) action that a business takes to reach its goasl
Circular supply model
a business model that enables businesses to reduce new material inputs, replacing them with recyclable, renewable or biodegradable materials
Resource recovery model
a business model that is focused on collecting, sorting, and processing waste materials to be used as inputs in the production process
Product life extension model
a business model that focuses on extending the time that a customer uses products
Sharing model
a business model that allows consumers to share the use of (potentially underutilised) products with strangers
Co-ownership
a type of sharing model involving the lending of physical goods
Co-access
a type of sharing model involving allowing others to participate in an activity that would’ve occured anyway(e.g. sharing seats in a carpool for a particular journey)B
B2B(business-to-business)
commerce between two businesses
B2C(business-to-customer)
direct commerce between a business and its customers
C2C(customer-to-customer)
commerce between customers themselves
Commerce
the activity of buying and selling
Product service system model
a business model that involves selling the service for using a product rather than selling the product itself
Product-oriented service system model
a type of product service system model which focuses on selling products and associated after-sale services(e.g. repairing or maintaining the product through a contract or take-back agreement)
User-oriented service system model
a type of product service system model where the business retains ownership of the product, but customers pay for temporary access to it(usually through a leasing agreement)
