200742
Description
Flashcards by lovelylaw2, updated more than 1 year ago
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Created by lovelylaw2
over 10 years ago
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| Question | Answer |
| What is a mission statement? Give an example | Is a short phrase that is used to describe the purpose of or the reason of existence for an organisation; e.g. Boots "Our goal is to help customers look and feel beautiful." |
| What are aims? Give an example | Aims are quite general targets that the business wants to achieve. e.g. "to maximise profits" |
| What are objectives? Give an example | Objectives have specific figures to achieve and dates to do so by in order to work towards achieving their aim; e.g. "to increase sales by 10% next year" |
| What is maximising profits? How do they do it? | Means to make the most profit that is possible. This means keeping costs as low as possible and its income revenue as high as possible. They have to be efficient with their resources to reduce costs and sell lots for high prices to increase profits. |
| What is maximising market share? How do they do it? | A company's market share is the percentage or proportion that the company has of the total market. This can be done by greater promotion, reducing prices, add new features to compete with the competition. |
| What is survival? | Survival is to literally break even and continue working as a business without closing down. Many small or new businesses have this aim. |
| What is breaking even? | Is the typical objective of a new business to make enough money from the revenue (sales) to equal the total cost. |
| What is market growth? how do they do so? | Market growth means to increase profit. This is by opening new branches and growing from within, or growing externally by purchasing other businesses. |
| What are non financial aims? Give an example. | Non financial aims are not to do with profit but the quality of life by being their own boss; e.g. Then the aim is likely to be to retain independence so they can make all decisions and not have to work for others (self-employed). |
| What will happen if a company gains a good reputation? | Satisfied customers = Reputation Improvement =More Customers = Repeat business = brand loyalty = less advertising costs |
| What is Corporate Social Responsibility? | Emphasis on stating business aims in terms of responsibility to the community, the environment and the planet. |
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