What’s business

?
  • Created by: ellie
  • Created on: 26-02-21 13:20

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 

FunctIonal objectives: The object tips of each department. They are more detailed than corporative objectives and are more specific to each department.

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…

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