Business aims and objectives Flashcards
Mission statement definition
It sets out the business vision and values that enable employees, managers, customers and suppliers to understand the basis for the actions of the business.
Businesses aims
The goals, which a business sets for itself so that it can measure how successful it has been in reaching its targets.
Why does businesses have aims?
Define what a business is
Serve as a guide
Provide targets
Act as a standard
Help in decision making process
What are the SMART business aims?
S - specific - a clear focus
M - measurable - easy to see if they have been achieved
A - Attainable - they are realistic
R - results oriented - a definite outcome
T - Timed - a clear time limit
Why do business aim for survival?
It is important when businesses first start up. At the start it would be unlikely for a business to make a profit. To survive a business would have to break even meaning total costs would equal total revenues earned.
Why do businesses aim for profit and turnover?
Profits reward the owners for risking capital in the business and want to see their rewards maximised. Everyone in the business benefits from profit and turnover. Profit also guarantees survival and ploughed back into the business to benefit it more.
Why do businesses aim for growth?
Managers and directors aim to improve their own status by maximising growth. Growth may also lead to an increase in long term profits. A business can grow by expanding into new areas by opening new branches, by taking over other business, or by extending its range of products.
Why do businesses aim for a good corporate image?
The business will be thought highly by its customers and give it a good reputation. Ways of doing this include: treating customers fairly and providing a number of customer service e.g. wheelchairs
Gives ways a company can be socially responsible
Working with local schools taking part in career meeting and competitions.
Allowing charities to organise collections in their premises
How might business aims alter over time?
When starting a business would aim for survival and when it becomes more established it may aim for profit improvement and overtime it could aim for growth as it expends to other countries.
What are businesses ethics?
They are the moral principles to the running of a business. These standards: are sometimes set by a code of conduct or a code of practice agreed by the industry. Also may be a set of principles used by an individual company.
What are business morals?
They are concerned with the distinction between right and wrong. A business wants to make a profit but it also wands to deal fairly and honestly with their customers, employees and suppliers.
Ethnical issues - environmental issues
Businesses have ‘care for the environment’ in their aims therefore they must landscape their grounds, plant trees, provide litter bins and sell biodegradable products
Ethnical issues - employees working conditions
Most businesses see their employees as their most valuable assets and provide good working conditions for them.
Ethnical issues - equality
Businesses aim to treat all customers with equality and give the best service to everyone. They aim to treat male and female with equality and give them fair pay and conditions.
