Business revision 3

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Aims and objectives of different business types
An aim or objective is a statement of what a business is trying to achieve over the next 12 months.
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For example, a business can set itself any of these targets:
survival, increased profit, growth, and increasing market share
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Organisations
Different organisations have different objectives. Some businesses are run to make as much profit as possible for owners. However, not all businesses aim to make profit. Voluntary organisations such as charities are more concerned with providing a se
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Setting objectives
When a business first starts trading it has few loyal customers and no reputation. The most likely objective for a start-up business is simply survival. As the business grows and begins to win market share, the aim may shift towards expansion and/or
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Some owners have a vague idea about their objectives. The best types of objective are SMART, which stands for:
Specific: clearly state what is to be achieved, eg increased profits/ Measurable: the desired outcome is a number value that can be measured, eg increase profits by 10%. Agreed: all staff are involved in discussing and agreeing an aim. Realistic: the
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Stakeholders
While owners have a major say in deciding the aims of a business, other interest groups called stakeholders are usually considered. Stakeholders are any group of people interested in the activities of the business - they could be managers, staff or c
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Why business objectives change
The aim of a business can change over time. This can happen in response to internal factors, such as business growth, or in response to external factors, such as an economic recession.
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A small start-up business
A small start-up business may aim to survive in the first year. Once successful, the business then sets itself the objective of increasing profits or growing in size.
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Card 2

Front

survival, increased profit, growth, and increasing market share

Back

For example, a business can set itself any of these targets:

Card 3

Front

Different organisations have different objectives. Some businesses are run to make as much profit as possible for owners. However, not all businesses aim to make profit. Voluntary organisations such as charities are more concerned with providing a se

Back

Preview of the back of card 3

Card 4

Front

When a business first starts trading it has few loyal customers and no reputation. The most likely objective for a start-up business is simply survival. As the business grows and begins to win market share, the aim may shift towards expansion and/or

Back

Preview of the back of card 4

Card 5

Front

Specific: clearly state what is to be achieved, eg increased profits/ Measurable: the desired outcome is a number value that can be measured, eg increase profits by 10%. Agreed: all staff are involved in discussing and agreeing an aim. Realistic: the

Back

Preview of the back of card 5
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