Business Objectives Flashcards
(21 cards)
What are business objectives?
Long-term goals that act as a framework for creating further objectives and setting the purpose of the business.
Why are business objectives important?
They help direct, control, and review any business activity.
What must be in place for a business aim to be successfully achieved?
Strategies that guide the business to achieve the goal.
What are the three types of objectives for a social enterprise?
- Economic (financial)
- Social
- Environmental
What does Corporate Social Responsibility (CSR) entail?
Businesses should consider the interests of society in their activities and decisions beyond legal obligations.
True or False: CSR can be a form of window dressing.
True
What are the potential benefits of CSR in the long run?
- Better reputation
- Lower regulations
- Increased chances of subsidies and grants
- Customer loyalty
What does the ‘S’ in SMART criteria stand for?
Specific
Fill in the blank: Every business objective must be _______.
SMART
What are the benefits of setting objectives?
- Provide a sense of direction
- Improve employee focus
- Framework for decision making
- Motivation tool
- Assess performance and identify training needs
What factors determine the corporate objectives of a business?
- Corporate culture
- Size and legal form of the business
- Number of years operating
- Economic conditions
- Ethics
What are corporate aims?
Long-term business goals that provide the central purpose of the business.
What is a mission statement?
A statement of a business’s core aims, intended to motivate employees and stimulate interest from outside groups.
What are the limitations of mission statements?
- Can be easily adopted by any business
- Not specific to a business
- Too vague and general
- Used as a PR activity
How do aims and objectives relate to business strategies?
Aims and objectives provide the basis for strategies as they are the long-term plans for the company.
What are the stages in the decision-making framework?
- Set objectives
- Assess the problem/situation
- Gather data
- Consider solutions
- Make a strategic decision
- Plan and implement the strategy
- Review success
What changes can affect business objectives over time?
- Market conditions
- Competition
- Technological improvement
- Customer taste
- Economic changes
Why is it important to communicate objectives within a business?
It ensures clear understanding and shared responsibility for targets across the company.
What is a code of conduct?
A document detailing a company’s rules and guidelines on staff behaviour that must be followed.
True or False: Ethical supply of raw materials is always cheaper.
False
What are the long-term benefits of adhering to ethical practices?
- Avoid legal problems
- Avoid bad publicity
- May attract skilled workers and investors
