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level: Business Aims and Objectives

Questions and Answers List

level questions: Business Aims and Objectives

QuestionAnswer
What are Aims, Mission Statements and ObjectivesAims: States the long term goal for the Business. The purpose Mission Statement: Describes the aims of the Business Objectives: Specific and measurable targets to help achieve the Aim
Some examples of Objectives?-Survival. Entrepreneurs may struggle their idea wasn't as good, or the market was too tough making it hard to make profit. -Profit Maximisation. Profit is usually the main objective as well its a reward for the Owners for putting time and effort in. -Market Shares/Sales Maximisation. Businesses may focus on increasing their market share, or even becoming the market leader -Growth. Again a majority of businesses want to grow. This can increase Profits and the Value of the Business. Growth can be local, national or international. -Social/Ethical Responsibility. Businesses are aware of their impact or responsibilities on Society, and change to it -Customer Satisfaction. Businesses ride on the train to provide quality serives/goods to their customers -Shareholder Value. The Shareholders notice how their dividend pay will be. Or the Share Price
What does objectives do to the Business?-Direction; Clear objectives equals a direction the business should go on. eg should it expand or not? -Focus for Employees; Make sure all employees focus the objective. This increases efficiency as well they know what they are doing -Allows Planning; The Business Plan will be created via the Business Objectives. -Measurements of Success; Objectives equals, is it going good. If its following it then yes it is
What can affect the Objectives?-Size of the Business; 1/2 businesses that are created fail in the first 5 years. Survival and Customer Satisfaction is critical -Level of Competition; If there is not that much competition, it can focus on Profits or maintaining its Market Share -Type of Businesses; Non-Profit Organisations may focus more on Ethnic or Social Objectives. Sole-Traders may focus on Survival.
Why do Objectives change overtime? [Internal]-Business has finished one Objective [eg Survive for a decade] and now wants to change up on Profit -Change in Views via owners/shareholders, or the Board of Directors. [e.g they want to become more Green]
What do Objectives change overtime? [External]-New competitor may challenge the Business. It switches to Survival -The Economic Environment could change. It could be the perfect/horrible time to expand -Technology changes. If a rival business brings out a new piece before you do -The Environment is being focused more and more, bringing pressure to some businesses [car businesses, oil businesses etc]