Goal setting and decision making Flashcards
a business goal
a business goal describes what a business expects to accomplish over a set period
what is a vision statement
describes where the business wants to be in the future and outlines how the business will acheive this goal/vision
acronym used to make goals
SMART
SMART stands for…
Specific, Measurable, attainable (challenging and realistic), Relevent, Time bound
goals of a small business can be found…
in a document called a business plan
goals of a large business can be found…
on their website on in annual reports
mission statement
describes what the business does and how it will achieve its vision
what are the three types if goals
financial, social and personal
examples of financial goals
making a profit, increase sales, increase market share, expand the business, maximising return on investment, improving the way the business operates
increasee sale goal
lower prices, clever/creative marketing or delivering better service
how to achieve the goal of increased market share
market share is a business’ share of total industry sales (percentage of sales in relation to all competitors), usually only a goal for large businesses
how to achieve the goal of expanding a business
employing more staff, opening more outlets, starting new projects, different products, merging with other businessees
how to achieve the goal of maximsing retur on investment
ratio that relates to the money gained or lost on an investment relative to the cost of the investment
how to achieve the goal of improving the way the business operates
operatinal performance can be measured by productivity, efficiency and effictiveness
examples of social goals
community service, provision of emplyment, social justice, ecological sustainability
how to achieve the goal of community service
owners may plan to financially support eduucational, cultural, sporting and welfare activities
why is provision of emplyment a goal
emplying family members
how to achieve the goal of sociial justice
making sure everyone is treated equally
what is decision making in business
the ability tto identify the options avaliable and then choose a specific course of action from the alternatives
steps in decision making
develop goals, outline facts, identify alternative solutions, analyse the alternatives, choose 1 alternative and implement it
