Exam code: 0450, 0986 & 0264, 0774
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Define business aim.
A business aim is the long-term aspiration of an organisation, expressing what it ultimately wants to achieve.
Define business objective.
A business objective is a specific, measurable, achievable, relevant, and time-bound target that must be achieved to realise business aims.
Why are clear aims and objectives important for a business?
Clear aims and objectives guide a business’s operations and focus employees’ efforts towards the same goal, contributing to effective functioning and long-term success.
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Define business aim.
A business aim is the long-term aspiration of an organisation, expressing what it ultimately wants to achieve.
Define business objective.
A business objective is a specific, measurable, achievable, relevant, and time-bound target that must be achieved to realise business aims.
Why are clear aims and objectives important for a business?
Clear aims and objectives guide a business’s operations and focus employees’ efforts towards the same goal, contributing to effective functioning and long-term success.
True or False?
Business objectives should always be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
True.
Business objectives are most effective when they are SMART, meaning they are clear and can be tracked and achieved within a set timeframe.
Define market share.
Market share is the percentage of total market revenue that a single business or brand achieves.
Give four common types of business objectives?
Common types of business objectives include survival, growth, profit, and market share.
True or False?
Business objectives never change as a company grows.
False.
Business objectives often change over time as the company grows and its priorities shift.
Why might a business’s objectives change from survival to profit maximisation?
As a business grows and becomes more established, its focus can shift from survival to profit maximisation, reflecting its ability to cover costs and seek greater financial returns.
How can objectives help managers and employees in a business?
Objectives provide a clear target for managers and employees, helping them focus efforts, measure performance, and potentially earn rewards for meeting goals.
Define internal stakeholder.
An internal stakeholder is anyone within the organisation, such as employees, owners, shareholders, or managers.
Define external stakeholder.
An external stakeholder is a person or organisation outside the business, like suppliers, customers, lenders, governments, or the local community.
What is the primary objective of a shareholder in a company?
The primary objective of a shareholder is to maximise their returns on their investment.
Give two key objectives of employees within a business.
Two key objectives of employees are to earn a living and have job security.
Managers are responsible for operations and want to profits while costs.
Managers are responsible for day-to-day operations and want to maximise profits while minimising costs.
Suppliers want to their products or services and have a relationship with the business.
Suppliers want to sell their products or services and have a long-term relationship with the business.
What is the main objective of a customer when dealing with a business?
The main objective of a customer is to receive high-quality products at a fair price.
True or False?
Lenders are primarily interested in the business providing jobs for the local community.
False.
Lenders are primarily interested in being repaid on time with interest, and in the financial stability of the business.
How can businesses manage conflicts between stakeholder groups?
Businesses can manage stakeholder conflicts through careful communication, transparency, and compromise.