Business objectives Details Flashcards
What does ‘SMART’ goals stand for
S - specific
M - measurable
A - attainable
R - relevant
T- time-focused
In the past, it was generally accepted that the main objective of businesses was to…
maximise profits
Types of social responsibilities
-Local-social responsibilities
-Global-social responsibilities
Types of ecological responsibilities
-Local-ecological responsibilities
-Global-ecological responsibilities
Benefits of pursuing CSR
-May gain higher revenue(as customers seek out businesses that align with their values)
-Customers are more likely to try, stay loyal to, promote and pay for purpose-led products
-More likely to recruit and retain talented and motivated employees
-More time to adjust to stricter social and environmental obligations(e.g. from governments)
-Improving their positive impact on society and the environment
Limitations of CSR
-Difficult to change the culture of the business
-Increased cost of production/inputs
-Reputational risk(if business does not follow through on public CSR commitments)
Requirements for strategic planning
-Understanding of/connection to vision and mission
-Market research
-Planning of milestones(to evaluate progress or revise strategy if needed)
-Sources of funding
-Consideration of the impact of plans on global and local scales as well as social and economic domains
-Evaluation of internal strengths and weaknesses and external opportunities and threats connected with strategic plans
Features of strategies
-the ‘how’ of a business
-Refer to significant decisions and actions
-Usually involve senior management
Features of tactics
-Smaller in scale
–Have shorter timeframes
-Involve less senior management/employees
-Tactical errors do not negatively impact the business as much
Key factor which decides whether a decision is a tactic or a strategy
The size of the organisation
Examples of tactics
-Changing pricing
-Revising a promotion
-Targeted advertising campaigns
Principles of a circular economy
-Eliminating waste and pollution
-Circulating products and materials(i.e. by ensuring that they are recyclable)
-Regenerating nature
Types of circular business models
-Circular supply models(AKA cradle-to-cradle product design)
-Resource recovery models
-Product life extension models
-Sharing models
-Product service system models
Features of circular supply models
-Based on nature’s principles(i.e. outputs feeding back into system as inputs)
-Enable business to reduce new material inputs
-Reduces environmental impact in supply chains
-May reduce the cost of resources
Principles of resource recovery models
-Collecting waste materials produced by householdes and businesses
-Sorting waste into different materials
-Secondary production(where waste is transformed into finished raw materials)
NB: These processes are often done by the government, for-profit social enterprises or other private enterprises
