UB - Business Objectives Flashcards
Name all 6 Business Objectives
- profit
- provision of a service
- increase market share
- growth
- social responsibility
- survival
(customer satisfaction)
(REMEMBER PPIGSS)
Explain why businesses want to provide a service and describe their aims.
Applies to: Private, Public and Third
Why? = So customers return
Private and social enterprises: good customer service
Public and charities: service for the community
Explain why businesses want to make profit
Applies to: Private sector and social enterprises only
Why? = To cut costs and increase prices
AIMS
Private sector companies: Maximise profits so they increase retained profits for growth
Social enterprises: To have more money to help their cause
Explain why businesses want to increase market share
Applies to: Private sector only- large organisations (LTDs)
AIM
* increase sales so they are the market leader and can release a new product or increase promotion
Explain why businesses want to grow
Applies to: Private and third sector
Applies: Private and third sector
Why? = Enables businesses to increase the scale of their operation and competitiveness
AIMS
* Private sector: To increase the number of shops, e-commerce, new releases
* Charities: Raising more awareness
* Social enterprises: Increasing sales, raising more awareness
Explain why businesses want to survive
Applies to: Private and third sector (/public too)
Usually aim of smaller organisations
AIMS
* Private and social enterprises: To have enough income from sales to cover costs
* Charities: To increase donations to cover costs
Public: To use taxes efficiently
Explain why businesses aim to have social responsibilities
Applies to: Private, Public and third sector
A business aims to carry out its activities AND benefit society or the environment
Advantages:
- Good reputation
- Customer are attracted to support an ethical business
- Good quality employees may be attracted to an ethical business
- May be able to attract ethical investors