aims and objectives for a growing business

?
  • Created by: Leah
  • Created on: 04-02-13 19:19
what is an aim?
overall target- long term goal
1 of 15
what is an objective?
short term target
2 of 15
what does SMART stand for?
specific, measureable, achieveable, realistic, time
3 of 15
what might objectives change to over time? ( 6 details)
to expand the business- organic growth ( buy more land), increase efficiency, increase market share and become a dominant market leader, going international, innovate, diversification
4 of 15
why might aims and objectives of a business change?( 3 details)
because they have already achieved previous aims so need to make new ones, market has changed, the business realises that the aims are not very achieveable ( over optimistic)
5 of 15
why do businesses need to set objectives? (4 details)
to help with decision making, provide a target to aim for, can help motivate people involved within the business because they know what they are trying to achieve, help investors understand the direction in which the business is going
6 of 15
what is innovation?
process by which an idea or invention is translated into a good or service for which people will pay
7 of 15
why might a business want to innovate? (2 details)
can give you a competition edge- dominant market leader, very important in a fast paced industry
8 of 15
what is diversification? give an example
occurs when a firm moves into new markets- mars diversifying to dog food and vending machines
9 of 15
why might a business choose to diversify?
you can spread your risk
10 of 15
what might be a disadvantage of diversification? ( 2 details )
can be difficult and challenging to juggle everything and high risk
11 of 15
why might a business want to go international?( 5 details)
reach new customers(pop of uk 62m, pop of china 1.3bn), reaching growing economies, bypass UK problems(the ecomony), could reduce risk, attract new investors which can help the business grow.
12 of 15
what is business ethics?
ethics are the moral principles that should underpin decision making
13 of 15
what could be a problem in business ethics?
different people have different view points of what's right and wrong
14 of 15
what are the benefits of having a higher market share?
business may then have the greatest power over suppliers and other firms in the industry, may be able to set a price that others will follow because they do not want to start a war with the biggest business in the market.
15 of 15

Other cards in this set

Card 2

Front

what is an objective?

Back

short term target

Card 3

Front

what does SMART stand for?

Back

Preview of the front of card 3

Card 4

Front

what might objectives change to over time? ( 6 details)

Back

Preview of the front of card 4

Card 5

Front

why might aims and objectives of a business change?( 3 details)

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Methods to grow a business resources »