Learn Unit 1, Section 1.2 Business Objectives

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1. List 6 objectives a new business may decide upon
1. Survival 2. Profit 3. Growth 4. Market share 5. Customer Satisfaction 6. Ethical and Sustainable
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2. State 3 advantages of setting business objectives
1. Everyone in the business will know what the aim of the business is 2. A target to measure success against 3. Helps with decision making, for example if you have an objective of being ethical staff will be thinking about this when they place orders
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3. Explain how a business can use an objective to measure the success of the business
If they have an objective of making £100,000 profit over a year they can look back to see if they have met that objective.
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4. What I meant by market share?
The percentage of sales in that market. For example Apple may sell 50% of phone. They are said to have 50% market share.
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5. What is meant by the market leader?
The person who sells the most items in that market.
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6. State one benefit of being market leader
You can demand larger discounts from suppliers.
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7. State 2 stakeholders and explain how they may try and influence the objectives of a business
Shareholders- They may try and get the business to have profit objectives as this would lead to their shares going up in value. Pressure group (such as Greenpeace)- they may try to persuade the business to have ethical or environmental objectives.
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8. What is meant by a sustainable objective?
Where a business works towards eliminating the effects the business has on the environment. For example reducing carbon emissions.
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9. What is meant by an ethical objective?
Where a business does the right thing by it's employees, customers, suppliers and the local community. E.g. paying a good salary and not employing children.
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Card 2

Front

2. State 3 advantages of setting business objectives

Back

1. Everyone in the business will know what the aim of the business is 2. A target to measure success against 3. Helps with decision making, for example if you have an objective of being ethical staff will be thinking about this when they place orders

Card 3

Front

3. Explain how a business can use an objective to measure the success of the business

Back

Preview of the front of card 3

Card 4

Front

4. What I meant by market share?

Back

Preview of the front of card 4

Card 5

Front

5. What is meant by the market leader?

Back

Preview of the front of card 5
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