Business Objectives Flashcards
Business Objectives
A measurable target that a business wishes to achieve.
Objectives of Private Sector Businesses
-Profit maximisation
-Profit satisficing
-Growth
-Increasing market share
-Survival
-CSR
-Increasing shareholder value
-Maximising short-term revenue
Corporate Social Responsibility
When a business considers the interests of society by taking responsibility for impact of their decisions and activities on communities and environment.
Pressure Group
Organisations created by people with common interests or aim, who put pressure on businesses to change their policies.
Triple Bottom Line
Objectives of social enterprises which include Economic, Social and Environmental objectives.
Objectives of Public Sector Businesses
-To provide efficient and reliable services to the public
-To encourage economic and social development
-Create employment
-Meet financial targets set by government
-Achieve high environmental standards
SMART objectives
A criteria to set objectives.
S-Specific
M- Measurable
A- Achievable
R- Realistic and relevant
T- Time-limited
Factors that determine objectives
-Business culture
-Size and legal form of business
-Private or public sector
-Number of years of operating
Business Aim
A long term goal that a business hopes to achieve.
Mission Statement
A brief statement of the business’s core aims, phrased to motivate employees to stimulate interest.
Annual Report
Or company report is a document that gives details of a company’s activities over the year including financial accounts
Benefits and Limitations of Mission Statments
Benefits
-Inform groups outside the business about the central aim and vision
-To motivate employees
-Including moral statements or values which may help direct or guide individual employees behaviour
Limitations
-Too vague and general
-Virtually impossible to anayse or disagree with
-Just a public relations exercise to make stakeholder groups feel good about the organisation
Budget
A detailed financial plan for the future
Ethical code
Or code of conduct is a document detailing the company’s rules or guidelines on staff behaviour
