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Department of Economics and Business DCS IGCSE BUSINESS1.1 OBJECTIVES
OBJECTIVESBroad statements of intent,what we as a business wantto achieve.
Most common commercialbusiness objectives:• Profit or sales maximisation. How do we calculate this?• Growth and expansion.(why do we want to get bigger-list possible advantages here…)• Market share, market leadership / domination.(again why?)
Also may include: • Customer satisfaction, customer loyalty. • Quality / value for money.Other aims concern - Image,environmental/social responsibility.Many may not be profit making bychoice….
Private SectorNon-profit making to:• Maximise money raised for cause eg charity• Advance religion, eg local temple (charity)• Relieve poverty eg many relief organisations after the China earthquake
- Examples Private SectorNon-profit making to:• Conserve environment eg Greenpeace (charity)• Advance education eg Exam board IB.
Aims of public sector (Governmentsector) / non profit makingorganisations:• More linked to society needs rather than owners…
- Examples Public Sector• Provide a service to the community eg hospitals• Expand knowledge / appreciation of area eg libraries (local govt.)
- Examples Public Sector• Relieve poverty eg• Conserve environment
The Changing Nature of ObjectivesMay be times when business has tochange long term objectives andconcentrate on short term.Factors influencing objectives: • Size & Legal Status • Ownership • Views of owners / directors / managers
The Changing Nature of ObjectivesMay be times when business has to change longterm goals and concentrate on short termobjectives eg survival in 2009-10 after globaleconomic crisis. Factors influencing objectives:. • Legislation • State of the Economy • Social attitudes • Changes in technology • Competition