1.1.2 Business objectives Flashcards
(12 cards)
What is profit maximisation?
Where the surpluses of revenue over total costs is at its highest.
What is sales maximisation?
Achieve the highest possible sales through volume or value.
What is sales satisficing?
Having enough profit to be satisfied but not purely motivated by it.
What does survival mean?
To continue to exist as a business.
What does market share mean?
The proportion of total market sales that a firm has (business sales/market sales x 100).
What does cost efficiency mean?
To control costs so that the maximum value of outputs is achievable with the lowest value of inputs.
What is employee welfare?
To look after the economic and physical wellbeing of the workforce which leads to and increase in productivity.
What are social objectives? Examples?
To behave in a way that benefits society. For example; create employment, support the local community.
What is customer satisfaction?
Where goods and services meets customers’ needs and expectations which leads to loyalty and sales.
What is return of investment?
A measure of a firms profitability and performance which allows for comparisons between alternate investment opportunities.
What does SMART stand for?
Specific, measurable, achievable, realistic, time-bound.
Why are business objectives set?
Sense of purpose, motivate employees, create award systems, measure performance, make decisions to improve performance.
