Business Aims and Objectives

Flashcards covering business aims, objectives, and stakeholders.

Aims

The long-term objective of the business, aiming to become the biggest in its sector.

SMART

Specific, Measurable, Achievable, Realistic, Timed/Time Manageable.

Objectives

Short to medium-term target a business needs to reach its aim.

Aims of For-Profit Organizations

Survival, Profit maximization, Increase sales revenue/maximization, Increase market share/customer base, Growth/expansion/diversification/multinational, Improve reputation/brand awareness, Improve quality/satisfy customers, Environmental/ethical aims, Provide jobs/community aims.

Aims of Not-For-Profit Organizations

To serve the community/ethical aims/environmental/social objectives/provide jobs, To provide services, To avoid wasteful duplication of resources, To control strategic industries, To prevent exploitation by monopoly suppliers, To help people in need.

Reasons Businesses Remain Small

Owners don't want to grow, low cost structure, serve niche markets, services delivered effectively on a small scale, consumers like specialist suppliers, adapt quicker than large businesses.

Stakeholders

Individuals and organizations who are affected by the decisions and actions of a particular business.

Customer Stakeholder Interests

Best quality/design/material from products bought.

Worker Stakeholder Interests

Fair treatment/pay/conditions.

Government Stakeholder Interests

Payment of taxes/keeping to various laws.

Pressure Groups Stakeholder Interests

Ethical source of materials/treatment of workers/the environment.

Local Community Stakeholder Interests

Pollution/congestion.

Supplier Stakeholder Interests

Prompt payment/ethical treatment.

Lender/Investor Stakeholder Interests

Repayment of debts/interest.

Owner Stakeholder Interests

Decision making effects on the business.