Business Objectives

Question 1

What is a business?

Answer 1

A business is an organisation that exists to produce goods and services on a commercial basis to customers

Question 2

Businesses exist to:

Answer 2

• Produce goods
• Supply services
• Distribute goods or services

Question 3

Most common business objectives

Answer 3

1) Profit maximisation
2) Survival
3) Sales maximisation

Question 4

Other business objectives

Answer 4

• Market share
• Cost efficiency
• Employee welfare
• Social objectives
• Customer satisfaction

Question 5

Business/ corporate mission

Answer 5

• Articulates the purpose of the company, basically why it exists, what it does and for whom
• It is a guide that spells out what the company is all about.
• The mission should focus on the here and now

Question 6

Business/ corporate vision

Answer 6

• Outlines the goals and aspirations for the future
• It creates a mental picture for the business
• Should be a source of inspiration

Question 7

Mission statement criticism

Answer 7

• not always supported by actions of the business
• often too vague and general or merely statements of the obvious
• viewed as a public relations exercise
• sometimes regarded cynically by employees