1.5.3

• Intrapreneurship


  The act of behaving like an entrepreneur while working within a large organization
• Flexible working


  • Example of flexible working
• Tall and flat organisational structures


  Differences between them
• Autocratic management style


  • Where you would find it
• Non-financial motives


  Motives an entrepreneur might have for starting a business
• Job rotation


  What it is
• Barriers to entrepreneurship

  • Two examples
• Taylor's motivation theory

  Explanation of it
• Business objectives

  • Survival
  • Profit maximisation
  • Sales maximisation
  • Market share
  • Cost efficiency
  • Employee welfare
  • Customer satisfaction
  • Social objectives
• Aims

  • To get a better phone for your birthday
  • To pass your A Level business
  • To get a part time job
  • To become a YouTube sensation
  • To learn to play the guitar
  • To learn to drive
• Business objective


  A goal or aim that a business wants to achieve. The best objectives are SMART and not vague, so that everyone in the business knows what direction the business is going.
• Survival as a business objective

  Survival is a short-term objective of a business and is usually applied to a new business or start-up. Having objectives helps the employees to focus on the shared aims of the business. Different businesses have different objectives, it can depend on the product, service or industry and even on the goals of the entrepreneur starting the business.
• Profit maximisation


  Profit maximisation is when a business wants to make the most profit possible from a given amount of resources. Profit maximisation is important as an objective because it helps a business to recoup any research and development costs (R&D). Profit maximisation is needed to help a business to maintain high levels of product development and innovation.
• Shrinkflation


  Lots of supermarket items are getting smaller. This is known as shrinkflation – where a manufacturer keeps the price the same but makes the product smaller. This is instead of passing on a price rise to the customer which would have a negative impact on demand.
• Sales maximisation

  Some businesses may set their objective as sales maximisation. Profit figures tend to be annually so sales figures can be examined on a daily, weekly or monthly basis. Managers find sales figures more satisfying as targets as profits go to owners and salaries are often linked to sales levels. Anyone interested in investing in the business may want to see the sales data and judge it as an indicator of performance. Often found in a sales driven environment like an estate agents or a car dealership.
• Market share


  Market share is the % of a market that a business has, either in revenue or in units sold. This may be an objective in a very competitive market where consumers switch between suppliers (supermarkets). Very important for investors to judge how a business is doing against competitors. Loss in market share can be an indicator of long-term serious financial problems.
• Cost efficiency

  The most common objective in transport and construction industries where goods and services make up 70% of the cost of a project is to achieve cost efficiency. Cost efficiency can be achieved by: Paying minimum wage to unskilled workers, Subcontracting where economically viable, Lean production or construction where material, time and process waste is eliminated to save costs, Increase the perceived value of the product through strong branding, Lower the quality and the price of the product, Lowering the average costs means economies of scale.
• Employee welfare

  Some businesses seek the harmonious relations with their workforce as an objective, and they aim to achieve this through employee welfare. External examples: Medical insurance, housing, education for family. Internal examples: Canteen, crèche, toilets, uniform. Employees that are satisfied are loyal and hard working, they have increased morale, motivation and productivity. The business also benefits from an enhanced public image as a good place to work – which makes recruitment easier.
• Customer satisfaction


  This objective is common in service industry and the coffee corner shop competitive market. Businesses who follow this objective will seek to monitor customer service levels through surveys and will focus on quality. They will attempt to identify and understand what the customer wants and then provide this. They also aim to reduce the number of complaints. A customer centred approach will: Ensure repeat sales, Create brand loyalty to prevent customers from switching to similar brands, Satisfied customers will tell others and reputation and word of mouth are very cheap ways of highly effective marketing to improve sales.
• Social objectives

  Social objectives are also known as corporate social responsibility or CSR objectives. This may involve: Reducing impact on the environment, Fair wages in developing countries, Helping society, Compliance with laws to minimise externalities like operating sensible hours so not as to noise pollute the local community.
• Sales Maximisation is where a business attempts to generate as much sales revenue as possible
• Survival is where a business aims to continue to trade
• Employee welfare is where a business has the aim of keeping the highest standards of health, happiness and care of their staff
• Market share is where a business aims to have a larger portion of sales in the market in which they compete