Chapter 1

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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

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