What is Business?

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Businesses exist in order to achieve business objectives 

Business objectives

  • Profit
  • Growh 
  • Survival 
  • Cash flow
  • Social 
  • Ethical 

SMART objectives 

  • Specific 
  • Measurable 
  • Achieveable 
  • Realistic 
  • Timed 

Mission statement : overall reason for the business' exisitence 

Corportate aims: the long-term targets and plans to fulfil the mission statement 

Corporate objectives: the medium to long-term quantifiable targets to fulfil the mission statement 

Corporate strategy: the actions to be taken by the business to achieve the objectives 

Business tactics: actions taken on a day to day basis to support the strategy 

Why do businesses create objectives:

  • Common sense of purpose 
  • Motivate employees 
  • Create reward systems 
  • Measure and review performance 
  • Inform decisions to improve performance 

Profit = total revenue - total costs 

Fixed costs stay the same regardless of the output 

Variable costs change in relation to the number of items produced

Total costs are fixed costs plus variable costs 

Forms of business:

  • Sole…

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