Key words:

Aim long term targets of the business

Breakeven where total costs equals’ total revenue

Objective short term ‘stepping stones’ on the way to aims


Changing aims and objectives

- Different depending on size of business

- Different depending on the market it is in

- Different depending on the point it has reached in terms of growth

Initial aims for a small business are to:

- Survive

- Breakeven

- Gain independence

Growing businesses may want to:

- Increase Profits

- Increase Market share

- Produce a larger range of products

- Market leadership – becoming the dominant business in its market – more control

Dominance can be bad for other businesses competing in the same market and, in the long run, bad for consumers

Expansion overseas:

- May face problems

- Language

- Communication

- Currency

- Different laws

- Try to overcome problems because of the advantages brought by international expansion

- Lower production costs

- Cheaper labour

- Power costs

- Lower transport costs

- Access to wider markets


Ethics and the Environment

Key words:

Carbon footprint - the amount of carbon (and therefore environment damage) released through an activity

Environmentally friendly - not harming the environment

Social costs - costs that affect the whole community, such as pollution

Advantages of being environmentally responsible:

- Greater efficiency

 - Lower costs

- Increased custom that comes…


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