Business planning, aims and objectives Flashcards
1
Q
What are business aims?
A
- General goals for the business
- Long-term goals
2
Q
What are a businesses main aims?
A
- Survival
- Profit maximisation
- Growth
- Market share
- Customer satisfaction
- Social and community
- Ethical and environmental
3
Q
Survival
A
- Owners want the business to continue into the long term
- Provide them with employment, income
4
Q
Profit maximisation
A
Owners want to make as much profit as possible given the size of the business and its market
5
Q
Market share
A
- Wanting to have the highest percentage of customers as possible
- Perhaps be the biggest business in the market
6
Q
Social and community
A
- Business wants to make a good impression in the community
- May sponsor local sports teams or musical events
7
Q
Ethical and environmental
A
- Businesses that are ethically motivated want to the right thing for their suppliers, workers and customers
- Businesses with environmental concerns attempt to run their businesses without doing harm to the world around them
8
Q
What are business objectives?
A
Specific target that is set for a business to achieve its aim
9
Q
What does SMART stand for?
A
- Specific- objective must be precise
- Measurable- should involve a number/percentage
- Agreed- by all relevant stakeholders
- Realistic- should be possible to reach
- Timed- set amount of time it should be reached in
10
Q
Why might businesses change their aims?
A
- Internal factors like faster or slower growth than expected, greater or less profit than expected, reaching objectives earlier than expected
- External factors like a change in consumer incomes, economic factors, change in government policies/ taxations
11
Q
What is a stakeholder?
A
Individuals and organisations that affect ad are affected by the activities of a business
12
Q
What are the different types of stakeholders?
A
- Owners
- Employees
- Managers
- Customers
- Suppliers
- Government
- Local communities
