Karteikarten
3.1.1: Understanding the nature and purpose of business
Karten in diesem Stapel (12)
- 1Mission Statement:A qualitative statement of a company's core purpose and values and the starting point for any corporate or functional objectives
- 2A Good Mission Statement:- clear
- concise
- appealing to customers
- provides direction for employees & the organisation
- original
- SMART - 3A Poor Mission Statement:- unclear
- uninteresting to customer
- excessive use of jargon (complex language)
- not SMART - 4Objectives Need to be SMART:S - Specific (so employess know what they're working towards)
M - Measurable (it can be measured to show if it will be achieved or not)
A - Agreed (staff must agree on the aim)
R - Realistic (the target is possible given the resources are available)
T - Timed (will be met in a given time period) - 5Hierarchy of Objectives: *Increasingly strategic going up *Increasingly details going downMission statement
(purpose)
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Objectives - corporate & functional
(long term goals/targets derived from aims)
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Strategy - corporate & functional
(medium long-term plans to achieve objectives)
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Tactics -team & individual
(short-term/day-to-day actions to implement strategy
------------------------------------------------- - 6Revenue: (turnover/sales)Money raised by a business from selling its products
Price x Quantity = Total Revenue
P X Q = TR - 7Costs:Expenses incurred by the business in order to operate. Two types known as Fixed and Variable.
- 8Fixed Costs:Costs which remain consistent as output changes e.g. salaries, rent, electricity etc.
- 9Variable Costs:Costs that change as output changes e.g. raw materials
- 10Total Costs:Fixed costs + Variable costs = Total costs
FC + VC = TC - 11Profit:Total Revenue - Total Costs = Profit
TR - TC = P - 12Importance of Profit:-Most important thing in a business
-Keeps business alive/defines success
-Can't exist without profit
-Reward
-Indicator of efficiency
Informationen
- Beschreibung
- Mission (good/bad), objectives (SMART), revenue, costs (Fixed/Variable), profit.
- Erstellt von
- Ashleigh-Jade Jones
- Aufrufe
- 19
- Bewertung