Chapter 4: Business objectives Flashcards
Business objectives
A stated measurable target that a business plans to achieve
Objectives of private-sector businesses
Profit maximisation
Profit satisficing
Growth
Survival
Corporate social responsibility (CSR)
Profit maximisation
The greatest difference between revenue and costs
Profit satisficing
Achieving enough profit to keep the owners satisfied
Corporate social responsibility (CSR)
When businesses take responsibility for the impact of their decisions on society
Pressure groups
Organisations created by people with similar aims, who pressure businesses/governments to change policies so that an objective is achieved
Triple bottom line
The 3 objectives a social enterprise has (Economic, social and environmental)
Objectives of public-sector businesses
To provide an efficient, reliable service to the public
To encourage economic/social development
To create employment or prevent major job losses
SMART
Specific
Measurable
Achievable
Relevant/realistic
Time-limited
Factors that determine business objectives
Business culture
Size and legal form of the business
Private or public sector
Number of years in operation
Business aims
A long-term goal that a business hopes to acheive
Mission statements
A brief statement of the business’s core aims, phrased in a way to motivate employees
Annual company report
A document that gives details of a company’s activities over the year, including financial accounts
Business strategy
A long-term plan of action for a business, designed to achieve a particular objective
Tactic
A short-term action as part of an overall strategy
