Business Objectives

Question 1

Objectives:

Answer 1

Goals set by a business.

Question 2

Diversify:

Answer 2

If a business diversifies, it increases the range of goods or services it produces.

Question 3

Revenue:

Answer 3

Money from the sale of goods and services.

Question 4

The importance of clear objectives:

Answer 4

• Employees need something to work towards.
• Objectives motivate people.
• Decide where to take a business and what steps are necessary to get there.
• Makes it easier to assess the performance of a business.

Question 5

Financial objectives:

Answer 5

• The survival of a business.
• Making profit.
• Increasing sales =n lower costs, larger market share, higher public profile and more wealth generated.
• Increase market share by winning customers from competitors. Businesses with large market shares may be able to dominate the market.
• Financial security also called profit satisfying - making enough profit to satisfy the needs of the owners.

Question 6

Non-financial/Social objectives:

Answer 6

• Increasing rates of recycling.
• Improving the quality of education.
• Providing employment for local people.
• Personal satisfaction
• Challenge
• Independence and control

Question 7

Non-financial/Social objectives:

Answer 7

• Increasing rates of recycling
• Improve the quality of education
• Providing employment for local people
• Personal satisfaction
• Challenge
• Independence and control

Question 8

Why might objectives change as business evolve?

Answer 8

As a business evolves, its aims and objectives are likely to change because businesses have to respond to events or changes in circumstances.

Question 9

Some if the main examples are:

Answer 9

• market conditions: when market conditions change (e.g. a rival arrives) a business must set new objectives
• technology: as technology develops businesses have to adjust their objectives
• performance
• legislation: new laws might be introduced
• internal reasons, e.g. change in ownership, change in the senior management teamm.

Question 10

SMART goals:

Answer 10

S - Specific: state what you’ll do; use action words
M - Measurable: provide a way to evaluate; use metrics or data targets
A - Achievable: within your scope; possible to accomplish, attainable
R - Relevant: makes sense within your job function; improves the business in some way
T - Time-bound: state when you’ll get it done; be specific on date or timeframe.