Business Objectives

Question 1

Common Business Objectives:

Answer 1

Profit Maximisation

Growth

Survival

Cash Flow (amount of money flowing in and out of the business)

Social + Ethical

Diversification

Market Standing (the ranking of a company in an industry compared to competitors)

Question 2

What does SMART stand for:

Answer 2

Specific- clear and easily defined

Measurable- Quantifiable

Agreed/Achievable- managers and subordinates are involved with setting targets.

Realistic- achievable and doesn’t with other objectives

Time Bound- explicit timescale

Question 3

Reasons to set objectives:

Answer 3

To help achieve overall goal

To give employees something to work towards (motivation)

Co-ordinate business activity

Aid growth and profit

Question 4

Two types of objectives:

Answer 4

Corporate- objectives for the whole business to co-ordinate business activities.

Functional- objectives for certain areas of the business which help them achieve corporate objectives and overall mission.

Question 5

Mission and Mission Statement:

Answer 5

Mission- an organisation’s aims or long term intentions/ ultimate purpose.

Mission Statement- a formal summary of the aims and values of a company.