Business objectivies Flashcards
(18 cards)
What is a business objective?
A goal that a business wants to achieve
Business objectives can vary from one business to another and change over time.
What are the two categories of business objectives?
- Financial objectives
- Non-financial objectives
What are financial objectives linked to?
Money
What do non-financial objectives encompass?
Everything other than money
What are social objectives?
Objectives related to doing morally correct things
What is one aspect of non-financial objectives regarding society?
To behave in a way that is good for society
List some environmental aspects included in non-financial objectives.
- Reuse of products
- Reducing waste
- Using energy in a more efficient manner
What personal satisfaction can business ownership provide?
Being successful helps to meet self-esteem needs
What does being one’s own boss entail?
Making all decisions based on personal preferences
What does running an organization test?
An individual’s character and abilities
What independence does an organization owner gain?
Complete control over decision-making
What decisions can an organization owner make?
- Product
- Location
- Pricing strategies
- Employment
What is the purpose of setting business objectives?
- Provides clear focus for the business
- Allows measurement of performance against objectives
- Sets targets for the business to work towards
- Aids in good decision-making
What does SMART stand for in business objectives?
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
What is the survival objective for a new business?
Survival of the business
What are some financial objectives for a business?
- To make a profit
- To increase sales
- To increase market share
- To achieve financial security
How is market share expressed?
Always in percentage
What is the formula for calculating market share?
Market share = (Business sales / Total market) x 100
