1.5.3 Business objectives

Question 1

define business objectives

Answer 1

are the goals set for the business as a whole, also known as corporate objectives. They derive from the mission and aims set by directors.

Question 2

what are the 8 business objectives

Answer 2

• survival
• profit maximisation
• sales maximisation
• market share
• cost efficiency
• employee welfare
• customer satisfaction
• social objectives

Question 3

whats a SMART objective

Answer 3

smart
measurable
achievable
relevant
time-bound

Question 4

what is sales maximisation

Answer 4

• business trying to maximise their sales
• examined on a daily, weekly or monthly basis
• managers motivated by sales figures as salary could be linked
• investors may want to see sales data

Question 5

what is market share

Answer 5

• % of the market that a business has
• an objective in a very competitive market
• investors judge how a business is doing against competitors

Question 6

what is cost efficiency

Answer 6

• ability to deliver products or services at the lowest possible cost while maintaining a desired level of quality
• The objective of minimizing costs while maintaining quality to improve profitability.
• achieved by minimum wage to unskilled workers, lean production.
• lowering the average cost means economies of scale will be achieved

Question 7

what is employee welfare

Answer 7

• the various services, benefits, and facilities provided by an organization to ensure the well-being and satisfaction of its employees.

external= medical insurance, housing, education for family
internal= canteen, toilets, uniform

• employees that are satisfied are loyal and hard working, they have increased morale, motivation and productivity

Question 8

what is customer satisfaction

Answer 8

• degree to which customers are pleased with a company’s products, services, and overall experience.
• common in service industry
• seek to monitor customer service levels through surveys and will focus on quality
• Aim to reduce number of complaints

Question 9

what is CSR

Answer 9

• CORPORATE SOCIAL RESPONSIBILITY
• refers to the ethical framework and practices that businesses adopt to contribute positively to society and the environment while conducting their operations.