Business Objectives Flashcards (4)

Flashcards covering key vocabulary related to business objectives.

Business Objective

A stated measurable target that a business plans to achieve. For example, a business objective could be to increase sales by 10% in the next year.

Profit Maximisation

Producing at that level of output where the greatest positive difference between total revenue and total costs is achieved.

Profit Satisficing

Aiming to achieve enough profit to keep the owners satisfied, rather than maximizing profit.

Corporate Social Responsibility (CSR)

When businesses consider the interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities, and the environment. Examples include reducing carbon footprint and ethical sourcing.

Pressure Group

Organizations created by people with a common interest or aim, who put pressure on businesses and governments to change policies so that an objective is reached. Examples include Greenpeace and Amnesty International.

Triple Bottom Line

The three objectives of social enterprises: economic, social, and environmental.

SMART Objectives

Aims that are Specific, Measurable, Achievable, Realistic, and Time-limited.

Business Aim

A long-term goal that a business hopes to achieve.

Mission Statement

A brief statement of the business's core aims, phrased in a way to motivate employees and to stimulate interest from outside groups.

Annual (company) Report

A document that gives details of a company's activities over the year, including its financial accounts.

Business Strategy

A long-term plan of action for a business, designed to achieve a particular objective.

Tactic

A short-term action as part of an overall strategy.

Target

A short-term goal that must be reached before an overall objective can be achieved.

Budget

A detailed financial plan for the future.

Ethical Code (Code of Conduct)

A document detailing a company's rules and guidelines on staff behavior that must be followed by all employees.

Growth

Business expansion which can lead to economies of scale and higher salaries for managers.

Survival

The primary objective for most new business start-ups, especially in the first two years.

Increasing Market Share

A business objective focused on gaining a larger proportion of total market sales through successful marketing strategies.

Maximising Short-term Revenue

A business objective that can benefit managers and workers if salaries and bonuses are tied to sales revenue levels.

Increasing Shareholder Value

A business objective that focuses on increasing returns to shareholders, often through higher dividends and share prices.

Economic Aim (Social Enterprise)

To make a profit to re-invest back into the business and provide some financial return to the owners

Social Aim (Social Enterprise)

To provide jobs or support for local, often disadvantaged, communities.

Environmental Aim (Social Enterprise)

To protect the environment and to manage the business in an environmentally sustainable way.

Public-Sector Business Objectives

Including providing an efficient service, encouraging economic development, creating employment, meeting financial targets, and achieving high environmental standards.

Specific (SMART)

Objectives should focus on what the business does and should apply directly to that business.

Measurable (SMART)

Objectives that have a quantitative value are likely to prove to be more effective targets.

Achievable (SMART)

Objectives should be achievable within the given time frame to avoid demotivating staff.

Realistic and Relevant (SMART)

Objectives should be realistic compared with the company's resources and relevant to the people carrying them out.

Time-limited (SMART)

A time limit should be set to assess whether the objective has been met.

Ethical Influences

Factors that cause