Theme 1: Topic 2

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  • Created by: psinfield
  • Created on: 20-01-19 10:54
What is an objective?
A specific and measurable task for the future
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What is a strategy?
The plan used to achieve the business objective
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How is profit calculated?
Total revenue - Total costs
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How is revenue calculated?
Price x Units sold
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How is market share calculated?
Company sales / Industry sales
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What does SMART stand for?
Specific, Measurable, Agreed/Achievable, Realistic, Time related
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Give examples of common business objectives
Profit max, survival, sales max, market share, cost efficiency, employee welfare, customer satisfaction, social objectives
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What is profit maximisation?
Achieving the maximum amount of profit possible
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What is survival?
Ensuring the company will continue to trade in the future by breaking even or ensuring adequate cash flow
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What is market share?
Proportion of the industries sales made by your business
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What is cost efficiency?
Producing a given quantity as cheaply as possible
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What is employee welfare?
Meeting the needs of your workers
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What is customer satisfaction?
Meeting the needs of your customers
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What are social objectives?
Objectives that help society is some way eg: raising funds for charity or using recycled materials to help the environment
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What are the main objectives of a business?
Profit max and survival
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Other cards in this set

Card 2

Front

What is a strategy?

Back

The plan used to achieve the business objective

Card 3

Front

How is profit calculated?

Back

Preview of the front of card 3

Card 4

Front

How is revenue calculated?

Back

Preview of the front of card 4

Card 5

Front

How is market share calculated?

Back

Preview of the front of card 5
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