Business objectives

Question 1

Business objectives

Answer 1

Short-term goals set by business to achieve business aim

Question 2

Buiness objevtives are used to:

Answer 2

-Motivate employees
-Give clear focus for decision-making
-Measure performance
-Provide targets

Question 3

What factors are used to influence business objectives

Answer 3

-Age of business
-Size of business
-Market conditions
-Level of competition

Question 4

Business survival

Answer 4

Used by
-New business
-Business making a loss
-Businesses struggling in an external shock e.g. COVID
-Businesses hit by competitive pressures

Question 5

Sales maximisation-Business objective

Answer 5

Used by low businesses, with low-profit margins e.g. Primark

Question 6

Market share-Business objective

Answer 6

Used in highly competitive markets
e.g. supermarkets

Question 7

Profit maximisation-Business objective

Answer 7

Used by businesses with price-setting power, to increase total profit for the year

Question 8

Cost efficiency-Business objective

Answer 8

Most cost-effective way to produce goods
-Businesses that have low-priced goods
-Looking to improve profit margins

Question 9

Employee welfare-Business objective

Answer 9

-Improve staff retention
-Used by businesses with high turnover or low productivity
-Improve customer service quality

Question 10

Customer satisfaction-Business objective

Answer 10

-Businesses that sell luxury goods e.g. Royls Royce
-Restaurants

Question 11

Social objectives-Business objective

Answer 11

-Set to benefit society
-Used by social enterprises
-Big businesses looking to improve customer perception/brand image