UB: objectives

Question 1

what are examples of business objectives?

Answer 1

• survival
• profit
• provision of a service
• social responsobility
• customer satisfaction
• market share
• enterprise

Question 2

describe survival

Answer 2

• every business must make enough profit to keep operating or else it will fold
• many new businesses have survival as their main objective during their first few years
• some small businesses will continue to have this objective as they struggle against economic recession or face fierce competition

Question 3

describe profit

Answer 3

• the profit objective is easy to measure and is achieved when you have more income than costs
• this is the most common objective within private secto rorganisations
• profit maximisation is a variation of the profic objective and it is when an organisation tries to make as much profit as possible

Question 4

describe provision of a service

Answer 4

• this objective is about focusing on providing a service to customers
• an example of this is the NHS, which provides free healthcare to the country

Question 5

describe social responsibility

Answer 5

• this objective is concerned with the businesses activities not causing damage to the environment or people
• for example some businesses use biodegradable packaging to reduce the harm it does to wildlife

Question 6

what can social responsobility result in?

Answer 6

being environmentally friendly tends to be costly, and this can result in a smaller profit margin for the business of higher costs passed onto the customer

Question 7

desribe customer satisfaction

Answer 7

• this objective aims to ensure customers are happy with the product and level of service provided by the business
• a main aim of customer satisfaction is that customers will show loyalty and return to buy from the business in the future

Question 8

how can customer satisfaction be measured?

Answer 8

through surveys and interviews that will then be acted upon

Question 9

describe market share

Answer 9

• market share is easy to measure and relates to the sales made in a particular market
  -to increase market share a business will aim to increase their sales or aim to become the number one business in that industry

Question 10

describe enterprise

Answer 10

• this objective is about taking the initiative to turn and idea into reality
• to do this a business/entrepreneur will take the risk of bringing together the factors of production