3.2.1 - Business Objectives

    Cards (11)

    • What do business objectives provide for firms?
      Targets to achieve and guide decision-making
    • What is the primary goal for most firms regarding profit?
      To maximize the difference between total revenue and total costs
    • What does the satisficing approach in business aim for?
      To achieve sufficient levels of profit to satisfy stakeholders
    • What is the goal of revenue maximization?
      To grow market share
    • What does the growth objective focus on?
      Increasing sales revenue, often at the expense of higher costs
    • What is the aim of expanding a business?
      To improve market dominance and long-term profitability
    • What are market share strategies aimed at?
      Increasing a firm's proportionate sales in comparison to total market sales
    • Why is survival an important objective for new businesses?
      It focuses on managing risks and ensuring the business continues to operate
    • What might ethical objectives impact for a firm?
      Reputation and customer perception
    • What are the key business objectives that guide firms in their strategic planning?
      • Profit maximization
      • Growth
      • Market share
    • How do business objectives shape operating strategies?
      • They provide direction and targets
      • They influence decision-making processes
      • They determine resource allocation