chapter 5 - business objectives Flashcards
definition of:
business objectives
the aims or targets that a business works towards
needs for business objectives
- time-specific
- measurable
- achievable
- specific
- realistic
benefits of setting business objectives
- give workers and managers a clear target to work towards (sense of direction), motivation
- taking decisions will be focused on achieving objections
- help unite business
- managers compare how business has performed
what are the business objectives?
- survival
- profit
- growth
- market share
- corporate social responsibility
explain survival
- new or small business
- firms in competitive market
explain profit
- private sector firms focus on profit maximisation
- required for further expansion
- payment to shareholders
explain growth
- gain higher status and prestige
- measured value of sales or output
- ensure greater job security
explain market share
- proportion of total market sales achieved by a business
- to increase customer loyalty and brand image
explain corporate social responsibility
- aim for profit but set more economical objectives
- improvise society
- help those underprivileged, unemployed
definition:
stakeholders
-any person or group with direct interest in the performance and activities of business
definition:
internal stakeholders
work for business or owns it
- manager
- employees
- owners
definition:
external stakeholders
part of business directly or indirectly and they’re outside of the business
- bank
- gov
- consumers
- community
explain owners
invest capital, take risks, pay shareholders
objective: earn profit and growth
explain workers:
employed by business, follow manager’s instruction, train to work efficiently
objective: job security, earn wages
definition:
managers
employee of business, control workers, make important decisions, plan resources
objective: control bigger business, higher status and power
