Business Objectives Flashcards Preview

A Level Business Unit 1 > Business Objectives > Flashcards

Flashcards in Business Objectives Deck (7)
Loading flashcards...
1
Q

Why do businesses exist?

A
  • to provide a good or service to a customer
  • if the business meets the needs of a customer it should succeed
  • formed by an entrepreneur willing to take risk
  • objectives are set to minimise risk and satisfy customer needs
2
Q

What are objectives?

A

A goal that the business wishes to achieve
- can be divided into corporate or functional objectives

Corporate objectives - are the goals of the entire business
Functional objectives - relate to specific sections of the business

3
Q

What are corporate objectives?

A
  • the ultimate aims of the business
  • the reason that they operate
  • usually seen as a business’ mission statement
4
Q

What is a mission statement?

A
  • a mission is a purpose or an intention

- business’ create mission statements to show what the business intends to do

5
Q

How do businesses set objectives?

A
  • once a mission is set, objectives are created to help complete it
  • objectives then allow a business to measure how successful it is
  • must make sure objectives are SMART
6
Q

What is SMART

A
  • Specific. Measurable. Achievable. Realistic. Time Related
  • makes it clear what to everyone involved in a business, in what they wish to achieve
  • allows the business to create a strategy to achieve this objective
7
Q

What are some possible business objectives?

A
  • improve cash flow position
  • maximise profits
  • social and ethical objectives
  • growth/expansion
  • improve reputation
  • survival
  • stakeholders needs
  • diversification