Objectives Flashcards
(12 cards)
What is an objective in a business context?
An objective is a specific goal or target that a business aims to achieve. Objectives give the business direction and help measure success.
Name four common objectives of private sector organisations.
Profit maximisation
Survival
Sales maximisation
Market share growth
What is profit maximisation and why is it important?
Profit maximisation means aiming to make the highest possible profit. It’s important for reinvestment, rewarding shareholders, and business growth.
What is meant by ‘survival’ as a business objective?
Survival means continuing to exist, particularly important for new businesses or during economic downturns when risk of failure is high.
Why might a business focus on increasing market share?
To gain a competitive advantage, benefit from economies of scale, increase influence in the market, and improve brand recognition.
What is the difference between sales maximisation and profit maximisation?
Sales maximisation focuses on increasing volume of sales, possibly sacrificing profit margins, whereas profit maximisation prioritises the highest return.
What objectives are typical for public sector organisations?
Provide a quality service
Use taxpayer money efficiently
Support government policy
Achieve value for money
What is meant by ‘providing a quality service’ in the public sector?
Ensuring the public receive high-standard, accessible, and reliable services, such as education, healthcare, or policing.
Give two objectives of third sector organisations.
To support a specific cause or aim (e.g. reduce poverty)
To raise awareness and funds to support their mission
What does CSR stand for, and why might it be an objective?
CSR stands for Corporate Social Responsibility. It’s an objective for improving a business’s impact on society and the environment, helping its reputation and stakeholder relationships.
What is a strategic objective? Give an example.
A long-term goal set by senior management.
Example: Becoming the market leader within 5 years.
What is an operational objective? Give an example.
A short-term, day-to-day goal.
Example: Increasing website traffic by 10% in a month.
