Objectives Flashcards
What are the factors affecting objectives?
Sector of industry
Size of organisation
Changing circumstances
What are the main objectives?
Maximising profits
Survival
Satisficing
Provide a quality service
Increasing market share
Managerial objectives
Working within a budget
Sales maximisation
Corporate social responsibility
What is maximising profits?
To make as much profit as possible.
What is survival?
Avoiding going out of business and having to cease trading.
What is satisficing?
Aiming for a satisfactory or adequate result rather than the best possible outcome.
What is providing a quality service?
To provide a high standard service to customers.
What is increasing market share?
To increase the percentage of total sales in a market that a business has.
What are managerial objectives?
Managers within large PLCs or public sector organisations may pursue their own objectives. They may try to achieve objectives which they believe will improve their status within the company.
What is working within a budget?
Sticking to their annual budget and not overspending.
What is sales maximisation?
Selling as many units as possible.
What is corporate social responsibility?
To act in an ethical way or in any way that benefits either society or the environment.
What are methods of ensuring good corporate social responsibility?
Ethical and environmental responsibilities e.g. avoiding the use of child labour.
Philanthropy e.g. donating to charity.
Economical responsibilities e.g. using fair and competitive marketing.
Legal responsibilities e.g. abiding by laws that govern businesses.
What are advantages of good CSR?
The business gains a good reputation for its caring nature.
Customers who agree with the aim are likely to use the business.
The business can attract high-quality staff who believe in the ethics of the business.
Society and the environment are kept in good order, which will benefit the business in the long run.
