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Business aims and Objectives - Coggle Diagram
Business aims and Objectives
objectives give a business a clearly defined target
main objectives
Survival
short term objective, small businesses just starting,
Profit Maximisation
trying to make the most amount of profit possible, aim of owners or shareholders
Profit satisficing
trying to make enough profit to keep owners comfortable. aim of smaller business,
increased market share
when a business tries to make as many sales as possible, managers believe that the survival of the business depends on being a larger business,
market share is the sales made by a business as a proportion of all the sales made by all businesses in the same industry/market
growth
when a business plans to increase the size of the business long-term
Objectives conflicting each other
profit vs growth
short-term vs long-term
Alternative Aims and Objectives
Ethical and socially responsible objectives
businesses have objectives which are based on their beliefs on how the environment is treated and people who are less fortunate
Charities and voluntary organisations
aims and objectives led by the beliefs they stand for
Changing objectives
a business may change it's objectives over time if they achieve their first aim or objective