UB - Business Objectives Flashcards

1
Q

Name all 6 Business Objectives

A
  • profit
  • provision of a service
  • increase market share
  • growth
  • social responsibility
  • survival
    (customer satisfaction)

(REMEMBER PPIGSS)

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2
Q

Explain why businesses want to provide a service and describe their aims.

Applies to: Private, Public and Third

A

Why? = So customers return

Private and social enterprises: good customer service
Public and charities: service for the community

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3
Q

Explain why businesses want to make profit

Applies to: Private sector and social enterprises only

A

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

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4
Q

Explain why businesses want to increase market share

Applies to: Private sector only- large organisations (LTDs)

A

AIM
* increase sales so they are the market leader and can release a new product or increase promotion

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5
Q

Explain why businesses want to grow

Applies to: Private and third sector

A

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

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6
Q

Explain why businesses want to survive

Applies to: Private and third sector (/public too)

A

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

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7
Q

Explain why businesses aim to have social responsibilities

Applies to: Private, Public and third sector

A

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
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