Business 1.1

What is a business?

An organisation which exists to provide goods and services on a commercial basis to customers.

What is the role of an entrepreneur?

• Spot opportunities

• Take calculated risks

• Act as a catalyst for start-ups

What is a start-up?

A new business formed by 1+ entrepreneurs.

What is a mission?

Long-term overriding goal of a business and the reason for its existence; the ultimate aim. It offers strategic perspectives and a vision for the future.

What is a mission statement?

The means of communicating aims of a business to key stakeholders. It is usually motivational.

What is an objective?

Step-by-step goals that must be achieved to help a business achieve its mission.

What is a corporate objective?

The goals of the whole organisation.

What is a functional objective?

The goals of individual areas of a business.

• E.g. marketing

What is the order for setting objectives?

1. Mission

2. Business objectives

3. Corporate objectives

4. Functional objectives

What are SMART objectives?

Specific

Measurable

Attainable

Realistic

Timely