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What is an aim?
The long term objective of the business
What does SMART stand for?
Specific
Measurable
Agreed
Realistic
Timebased
What is an objective?
A short or medium term target of a business needed to reach its aim.
(E.G. increase sales by 20% in the next 5 years)
Give 3 examples of aims got profit organisations
Survival
Profit maximisation
Increase sales revenue
Increase market share
Growth / expansion
Improve reputation / increase brand awareness
Improve quality / satisfy customers
Environmental / ethical aims
Provide jobs
Give 3 examples of aims for not-for profit organisations
To serve the community
Provide jobs
To provide services
To avoid wasteful duplication of resources where a natural monopoly exists, such as rubbish collection and beach cleaning.
To control strategic industries.
To prevent exploitation by monopoly suppliers.
To help people in need
Give 2 reasons why some businesses decide to remain small.
Owners are content
Can survive on a low cost structure
Some niche markets have no scope for growth
Services delivered better on a small scale
Consumers may prefer to buy from small businesses
They can adapt quicker than large businesses
What are some External Stakeholders?
Suppliers
Society
Government
Creditors
Shareholders
Customers
What are some internal stakeholders?
Employees
Managers
Owners
What are stakeholders?
Individuals and organisations who are affected by the decisions and actions of a particular business
Note 
Flashcard (33)