business objectives

Question 1

what does it mean to fulfill a market need?

Answer 1

being specific and and targetting a paticular unmet needs for particular markets.
- geographic areas, e.g parcel delivery to farm communties
- demographic (groups of people), e.g. wheelchairs for disabled people
- Niche markets (specialised products), e.g. long lasting food for luxury camp.

Question 1

what are the 7 business objectives?

Answer 1

• to fulfill a market need
• to improve efficiency
• to increase market share
• to improve effectiveness
• to make a profit
• to fulfill a social need
• to meet shareholder expectations

MEME Pupinia Stewart S

Question 2

what does it mean to improve efficiency?

Answer 2

• how well a business uses its resources to achieve an objective, minimise resources needed and maximes the output generated. good for waste minimisation, reduces costs.
• done through: technology, skilled employees,quality inputs

Question 3

what does it mean to increase market share?

Answer 3

• businesses having large product ranges to increase market share, they might change their prices to do this.

Question 4

what does it mean to improve effectiveness?

Answer 4

-relates to the degree the business has achieved their objective.e.g. a business has an objective to increase market share by 10%, but it improves by 7%, this is not effective.

Question 5

what is the business objective: to make a profit?

Answer 5

profit is central to most business’ and is returned to the owners/shareholders, the amount of profit indicates the size of the business whilst the objective (market share) can help increase sales.

Question 6

what is a market share?

Answer 6

the proportion of total sales in an industry that is controlled by a business, calculated for a specific period of time.
small market share gains can translate into large profits. pie charts are often used to display this.

Question 7

what does it mean to fulfill a social need and how can a business do this?

Answer 7

when the business aims to make the world a better place as well as make a profit. e.g. Nespresso has a social responsibility plan called “the positive cup,” the want to make quality coffee and reduce their carbon footprint.

Question 8

how do businesses meet shareholder expectations?

Answer 8

-increased profits (share dividends)
- increased market share (taking customers from emirates)
- fulfilling market need (flying to rural areas)
- fulfilling social need (reduce carbon emissions from fuel)