Types of Business Aims

Flashcards based on the main types of business aims, their implications, and differences among various types of businesses.

Business aims

What a business wants to achieve in the future.

Survival

To break even, meaning neither a profit nor a loss.

Profit maximisation

Making as much profit from the resources being used.

Increase sales revenue

Selling more products to existing and new customers, or selling products at a higher price.

Increase market share

The percentage of sales made by a business compared to the total sales in a market.

Business growth

Investing money into new premises, selling products and services in new markets, starting to operate online, or developing new products and services.

Improve customer satisfaction

A measure of how the goods and services of a business meet or surpass customer expectations.

Environmental/ethical aims

Aims based on the beliefs of the owners on how to treat people and the environment.

Social aims

Meeting social needs such as reducing local unemployment or supporting low-income families.

Internal factors

Changes within a business that affect business aims, e.g., changes in demand or unexpected problems.

External factors

Changes outside a business that affect business aims, e.g., changes in consumer income or legislation.

Consumer awareness

Increased knowledge among consumers about environmental and ethical issues.

Stricter laws and regulations

Government-imposed rules that impact business operations regarding environmental and ethical standards.

Brand reputation

The public's perception of a business based on its practices and products.

Social responsibility

The obligation of businesses to act in ways that benefit society.

Small businesses vs. large businesses

Small businesses often focus on survival or profit, while large businesses focus on growth and maximising profit.

Start-up vs. established businesses

New businesses aim to survive and build a customer base, while established businesses focus on profit maximisation or increasing market share.

Private sector vs. public sector

Private sector businesses aim to make a profit; public sector businesses aim to provide vital services.

For-profit vs. non-profit business

For-profit businesses focus on making money, while non-profit businesses aim to help people or the environment.

Local vs. global businesses

Local businesses aim to serve the community, while global businesses focus on growth and building a worldwide brand.