1.5.1 business objectives 1. learning outcomes to understand what is meant by a business objective...
TRANSCRIPT
1.5.1 Business objectives
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Learning Outcomes
• To understand what is meant by a business objective and the objectives available to a business
• To understand why business objectives are important
• To understand that businesses can have more than one objective
• To understand the objectives of a social enterprise
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Starter – Match up the key terms with their definitions
Profit The firm or product with the highest market share in a given market
Market Leader The amount of money a firm makes from selling it’s goods and services
Revenue When a firm is neither making a profit or a loss.
Total Costs Revenue – Total Costs
Breakeven The percentage of sales in a market that are made by a particular product or firm
Market Share The amount of money that a firm spends in order to produce goods and services.
Business objectivesSMART objectives
• Business objectives are the stated goals of the business
• To be effective, objectives should be SMART:
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SMART
SpecificSMeasureableM
AgreedARealisticR
Time-framedT
Clickhere
What do you understand by these characteristics?
Are these objectives SMART?
• To lose 15kg within 2 weeks• To save $600 dollars within the
next year• To achieve at least 4 grade 7’s in
the IB in June• To get fitter by Christmas
Hierarchy of Objectives…..
Why do the arrows flow in this direction?
Importance of Objectives….
• Why are Objectives so important?
Business Objectives
• The main motivation for setting a own business is to make a PROFIT
• However people who set up in business may want to achieve a number of objectives
• These can be Financial or Non-Financial
•Survival•Profit
•Growth•Market Share
Financial Objectives
•Employees•Customers
•Environmental
Non-Financial Objectives
Common business objectives
• Survival• Profit maximisation/profitability• Sales turnover• Market share• Satisficing• Growth
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When might each of these objectives be most appropriate?
Task - 5 mins
• Choose 2 businesses and use the internet to try and research their objectives
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Discuss: Why business objectives can
change over time?
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Business objectives
Lets Get Practical
Business objectivesTask
• You have recently decided to set up a shop selling..?– Write a mission statement for the shop– Write down two SMART
objectives for the business, explaining your reasoning
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Would your objectives Change If….
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Your market was experiencing rapid growth?
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The National or International Economy went
into recession?
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Your market was facing increasing competition?
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Your market was in decline?
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Your business faced a crisis e.g. a negative press
release about use of child labour in your business?
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Social Enterprises…What are they?
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Social Enterprises
• A business with a social or environmental mission
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Task
• Go to this website:• http://www.socialenterprise.org.uk/• Go to the members directory and view some
social enterprises.• Find out:
> What they do> Consider their business objectives
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