Notes
Chapter 1
Content of the notes (2)
Page 1
Why business exist
Show what they can do
Create income
Growth
Survival
Create reputation
Mission & Objectives
-Mission is the aim for the business
-Aim is a general statement of where a business is heading
-Mission statement is a short sentence that explains the business aims clearly and motivationally
-Objectives help you to achieve aims and mission
-Objectives are SMART
-SMART (Specific, Measurable, Achievable, Realistic, Time)
Why businesses set objectives
Objectives are set to make decisions that contribute towards achieving goals.
It motivates staff and managers
they are medium-long term plans
Common business objectives
Profit Optimisation- profit provides capital to fund business growth> also getting the right balance between two or more possibilities
profit maximisation- to make as much profit as possible
Growth- growth equals more profit
Cash flow- cash flow to remain positive
Survival- survival will rely on keeping cash flow high enough
Social and ethical- the influence over a business decision making, image related
Page 2
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- What is business> Corporate objectives- targets for the whole business> Strategy- medium-long term plan for meeting objectives
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- zoelle sagoe
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