Business Objectives and Business Decisions. 157 questions, answered

Q: What are common areas where ethics are tested in business?

Advertising Personal Selling Suppliers Contracts Pricing

Q: Why is ethical consideration important for businesses in their supply chain?

Avoids unethical practices like: Child labor Sweatshops Rights violation Health and safety standards

Q: How does consumer activism impact business ethics?

Increases scrutiny of business activities Consumers: Interested in sourcing of products Influence businesses to improve ethical practices

What role do pressure groups play in business ethics?

Pressure groups act as external stakeholders.
Focus on ethical practice of multinationals/industries.
Use direct and indirect actions to influence change.
Challenge businesses considered unethical (e.g., animal furs).
Support businesses with strong ethical stances like Fairtrade.

What are common areas where ethics are tested in business?

Advertising
Personal Selling
Suppliers
Contracts
Pricing

How does consumer action influence business ethics?

Consumers act against businesses behaving irresponsibly.
Target businesses with unacceptable practices.
Positive actions support businesses with ethical stances.
Example: Fairtrade encourages ethical sourcing.

What are the benefits of behaving ethically for a business?

Higher revenues from positive consumer support
Improved brand awareness and recognition
Better employee motivation and recruitment
New sources of finance, e.g., ethical investors

Why is ethical consideration important for businesses in their supply chain?

Avoids unethical practices like:
- Child labor
- Sweatshops
- Rights violation
- Health and safety standards

What are the advantages of adopting ethical business behavior?

Higher revenues from positive consumer support.
Improved brand and business awareness.
Better employee motivation and recruitment.
New finance sources from ethical investors.

What must ethical businesses be concerned with in the supply chain?

Ethical businesses must be concerned with the behavior of businesses in their supply chain.
Key entities: suppliers, contractors, distributors, sales agents.

What are the possible drawbacks of behaving ethically?

Higher costs due to buying from Fairtrade suppliers rather than lower price alternatives
Increased overheads, e.g., training & communication of ethical policy
Risk of creating false expectations

How does consumer activism impact business ethics?

Increases scrutiny of business activities
Consumers:
- Interested in sourcing of products
- Influence businesses to improve ethical practices

What are the disadvantages of ethical business practices?

Higher costs, e.g., sourcing from Fairtrade suppliers.
Increased overheads for training and communication.
Risk of creating false expectations among stakeholders.

What is the relationship between business ethics and CSR?

Overlap exists between CSR and business ethics.
Socially responsible firms should be ethical.
Ethical firms should be socially responsible.
Distinction:
- CSR: Responsibility to stakeholders/shareholders.
- Ethics: Morally correct behavior.

How do pressure groups influence businesses regarding ethics?

Pressure groups are external stakeholders.
Focus on the ethical practice of industries with ethical issues.
Use direct and indirect actions to target businesses.

What are some essay questions related to business ethics?

Can businesses that behave unethically satisfy shareholders in the long term?
Should a business be allowed to act unethically if it delivers what customers want?
Do you agree that big businesses can no longer be relied upon to behave ethically?
What is more important: profit or ethics?

What do ethical codes of practice typically cover?

Corporate social responsibility.
Dealings with customers and supply chain.
Environmental policy and actions.
Rules for personal and corporate integrity.

What are some ways consumers can take action against unethical businesses?

Consumers may act against businesses they view as unethical (e.g., animal fur).
Target businesses acting irresponsibly.
Support ethical businesses.

In which areas are business ethics commonly tested?

Advertising
Personal selling
Suppliers
Contracts
Pricing

What is the impact of short-termism on corporate objectives?

External investor pressure often focuses on short-term objectives.
This can be prioritized over long-term strategies.
Balancing short-term and long-term is crucial for sustainable growth.

How does ethical behavior differ from lawful behavior?

Ethical behavior: doing what is morally right.
Lawful behavior: doing what is legally permitted.
Ethics go beyond law, focusing on morality.

How does the economic environment affect corporate objectives?

Perspectives on economic indicators like growth, consumer spending, and interest rates.
These factors influence business planning and decision-making.
Economic stability can enhance or hinder objectives.

What factors influence business ethics?

Varies greatly among businesses.
Influenced by individuals and culture.
"The higher the buildings, the lower the morals" implies ethical challenges.

What are some unethical supply chain practices?

Cannot claim to be ethical if suppliers use:
- Child and forced labor
- Sweatshop production
- Ignoring rights of workers and health/safety/environmental standards

What are some internal influences on corporate objectives?

Business Ownership: Goals of owners.
Attitude to Profit: Profit or not-for-profit.
Ethical Stance: Role of ethics in decision-making.
Organisational Culture: Business structure and decision-making.
Leadership: Leadership's influence on objectives.
Strategic Position & Resources: Realistic options based on market position.
Stakeholder Influence: Influence of internal stakeholders.

What are internal influences on corporate objectives?

Business ownership: Who owns the business and their goals?
Attitude to profit: Profit-driven or not?
Ethical stance: Role in decisions?
Organizational culture: Structure and decision-making.
Leadership: Influence on objectives and decisions.
Strategic position/resources: Market position/resources.
Stakeholder influence: Stakeholders' impact.

How can the political/legal environment impact corporate objectives?

Uncertainty in political and legal environments affects business confidence.
Adaptation to regulatory changes is necessary.
Compliance and risk management become priorities.

What is the difference between strategy and tactics in business?

Strategy:
- Long-term plan, based on business vision.
- Designed for corporate objectives.
- Commits most resources.
Tactics:
- Short-term tasks, responsive to opportunities/threats.
- Influenced by functional objectives.
- Commit low resources.

What are external influences on corporate objectives?

Short-termism: Pressure for short-term objectives.
Economic Environment: Impact of growth, spending, interest rates.
Political/Legal Environment: Uncertainty in these fields.
Competitors: Influence on business strategies.
Social & Technological Change: Impact on objective-setting.

In what ways do competitors influence corporate objectives?

Competitor actions and strategies shape business practices.
Regular market analysis is needed to remain competitive.
Understanding competitors helps refine objectives.

What elements are included in strategic vs. tactical business theory?

Strategic:
- Mission statement
- Vision and values
- Organizational culture
- Business plan
- Growth strategy
- Segmentation/positioning
Tactical:
- Marketing mix
- Financial/non-financial reward
- Inventory management
- Location decisions
- Day-to-day customer service

How do social and technological changes affect objective setting?

Rapid social and technological change impacts market dynamics.
Businesses must adapt quickly to evolving trends.
Objective setting and decision-making can become more complex.

What is business strategy according to Johnson and Scholes?

Business strategy directs the organization's long-term scope.
Achieves advantage via resource configuration in a challenging environment.
Meets market needs and fulfills stakeholder expectations.

What characterizes business tactics?

Focus on short-term issues.
Respond to opportunities and threats.
Influenced by functional objectives.
Includes marketing mix, financial rewards, inventory management, location decisions, customer service decisions, and recruitment processes.

What are some examples of strategy versus tactics used by companies?

Strategy:
- Starbucks: 2000 stores, focus on experience to build brand and leadership.
- Netflix: Vision for global streaming content, investment in creation.
Tactics:
- Starbucks: Social media campaigns, local store adjustments.
- Netflix: Responding to viewer data, diverse content offerings.

What is the hierarchy of objectives in business as described?

Mission
Corporate Strategic
Functional
Team
Individual
From increasingly strategic to increasingly detailed

What factors are involved in a business strategy?

Long-term goals of the business.
Markets and activities to compete in.
Performance relative to competitors.
Required resources like skills and assets.
External environmental factors.

What are business objectives and their main functions?

Intentions: Specific outcomes from business strategies.
Targets: Goals set to track achievements.
Functions:
- State achievements.
- Focus activities.
- Individual/group target setting.
- Performance measurement.

How should corporate objectives feed into functional objectives?

Corporate objectives guide functional objectives
Example: Increase market share leads to launch of a new product
Reduce costs leads to increase profits by 10% in 2 years
Increase cash flow by reducing invoice time to 60 days
Improve customer satisfaction to achieve 95% level

What are the components of SMART objectives?

Specific: State exactly what is to be achieved.
Measurable: Determine if the objective is achieved.
Achievable: Realistic given circumstances and resources.
Relevant: Pertinent to responsible people.
Time Bound: Set deadlines that are realistic.

What are typical corporate objectives?

Sales Revenue: Increase income.
Profit: Maximize financial gain.
Return on Investment: Improve ROI.
Growth: Expand business size.
Market Share: Capture larger market.
Cashflow: Optimize liquidity.
Business Value: Enhance worth.
Corporate Image: Boost reputation.

What does the SMART acronym help management achieve?

SMART acronym assists management.
Sets effective objectives.
Offers a framework for clarity and focus.
Helps in achieving goals efficiently.

What does the acronym "SMART" stand for in setting business objectives?

Specific: Clearly state achievement.
Measurable: Capable of assessment.
Achievable: Realistic goals.
Relevant: Applicable to business.
Time-bound: Set time frame.

What are some example functional objectives aligned with corporate objectives?

Increase sales: Launch five new products in two years (marketing).
Reduce costs: Boost factory productivity by 10% by 2012 (operations).
Increase cash flow: Decrease invoice payment time from 75 to 60 days (finance).
Improve customer satisfaction: Reach 95% high customer service level (people).

What is the relationship between corporate and functional objectives as depicted?

Corporate objectives are the overall goals set by the organization, acting as a master.
Functional objectives are specific goals for departments, serving as a servant to achieve corporate aims.

What are functional objectives?

Set for each major business function.
Ensure corporate objectives are achieved.
Designed to align with overall business goals.
Serve individual business functions.

What are some examples of corporate objectives related to market standing?

Market standing includes:
- Market share
- Customer satisfaction
- Product range

What are the purposes of corporate objectives?

Strategic Focus: They provide a clear strategic focus.
Performance Measurement: Measure the firm’s performance as a whole.
Decision-Making: Inform decision-making, involving choices.
Functional Objectives: Set the scene for more detailed objectives.

What are corporate objectives?

Relate to the business as a whole
Guide the overall direction
Influence long-term strategy
Important for setting goals
Help in measuring success

What is an example of a corporate objective focusing on productivity?

Productivity focuses on:
- Optimum use of resources
- Focus on core activities

What is the corporate objective shown in the hierarchy example?

The corporate objective is to achieve a market share of 12%.

Name some objectives under physical and financial resources for corporations.

Physical & financial resources include:
- Factories
- Business locations
- Finance
- Supplies

What is the functional objective in the hierarchy example?

The functional objective targets a sales per customer figure of £45.

List examples of profitability-related corporate objectives.

Profitability encompasses:
- Level of profit
- Rates of return on investment

What is the hierarchy of objectives?

Mission: Broadest, most strategic level.
Corporate/Strategic: Aligns with the mission.
Functional: Specific functions within the organization.
Team: Objectives for team-level achievements.
Individual: Most detailed, personal objectives.

What is the unit objective in the hierarchy example?

The unit objective aims for shop sales totaling £500,000.

What management-related objectives might a corporation have?

Management may focus on:
- Management structure
- Promotion & development

What is the role of a business's mission?

Overall purpose of the business
Guides decision-making
Influences strategic direction
Communicates core values
Inspires stakeholders

What are corporate objectives concerning employees?

Employees focus on:
- Organisational structure
- Employee relations

How does a vision differ from a mission?

Represents overall aspiration of the business
Future-oriented and inspirational
Shapes long-term plans
Helps align stakeholders
Motivates company growth

Describe public responsibility as a corporate objective.

Public responsibility includes:
- Compliance with laws
- Social and ethical behaviour

How are objectives different from aims or goals?

More precise and detailed
Specific measurable targets
Short-term focus
Help track progress
Clarify responsibilities

What are some examples of mission statements?

IKEA: "To create a better everyday life for the many people."
Starbucks: "To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time."
Amazon: "To be Earth's most customer-centric company where people can find and discover anything they want to buy online."

What is the purpose of a mission statement?

Overriding purpose of the business.
Reason for existence.
Strategic perspective.
Supports stated vision for the future.

What are common criticisms of mission statements?

Not always supported by the actions of the business.
Often too vague and general.
Frequently restate the obvious or are considered fluff.
Sometimes not effectively integrated into the business culture.

What are the main organizational aims and objectives of public vs. private sector organizations in the UK?

Private sector: Main objective is profit maximization.
Public sector: Focuses on non-profit aims like policing, education, and healthcare.
Private firms may pursue secondary objectives like environmental protection but profit is primary.

What is a mission statement not intended to be?

Not a statement of goals or objectives.
Not a statement of core values.
Not about completing or positioning in the market.

How are a business’s mission statement, aims, and objectives structured?

Linked in a hierarchical structure: broad to specific.
Mission statement: Sets overarching reason for existence.
Aims: Broader, long-term.
Objectives: Clear, actionable steps guiding daily operations.

How do organizational stakeholders and expectations differ between public and private sectors?

Private sector: Stakeholders are customers and shareholders; expectations relate to profit and returns.
Public sector: Stakeholders include government and public; focus is on adequate service delivery.

What is the hierarchy of objectives related to a mission statement?

Aim
Mission
Corporate objectives
Functional objectives
Business unit/individual targets

Who are the key audiences for a mission statement?

Employees
Customers
Investors
Society

What is Corporate Social Responsibility (CSR) and why are firms adopting it?

CSR involves a business taking responsibility for its decisions' impact on stakeholders.
Incorporates social and environmental concerns.
Ethical responsibilities can increase profits and customer loyalty due to moral values.
Reasons for adopting:
1. Seen as good citizens.
2. Motivates employees.
3. Attracts customers.
4. Lowers production costs (e.g., solar power).
5. Avoids legal issues.
6. Eases capital acquisition from socially responsible investors.

What defines a business’s core purpose and values?

Mission statement: Fundamental element defining core purpose.
Answers "Why do we exist?"
Example: "To inspire and nurture the human spirit" (Starbucks).

What are the levels of public scrutiny for public and private sector organizations?

Public sector: Experiences higher scrutiny due to taxpayer funding.
Private sector: Scrutinized mostly in context of business performance and media coverage.

What makes a good mission statement?

Clear sense of purpose
Motivates and guides
Easy to understand and remember
Relevant to all stakeholders

What are the objectives of public-sector businesses?

Focus on service quality improvement, not profit.
Examples: NHS, BBC, Network Rail.
NHS: Healthcare within budget, immunization, promote healthy lifestyles.
BBC: Provide and sell TV content.
Network Rail: Safe railway operations.

How do business objectives change over time, particularly for new companies?

Business objectives evolve.
Initially, a new company aims to survive or break even, as 80% fail in the first year.
Post-survival, objectives may shift to profitability.
Profitability leads to aims for expansion.

How does the impact of external environment differ between public and private sectors?

Public sector: Impacted by political stability and government policies.
Private sector: Affected by competition, technological advancements, and economic climate.

What is the purpose of a mission statement in private-sector businesses?

Summarizes overall objectives.
Should be concise and memorable.
Helps motivate staff and keep business on track.
Allows measurement of success.
Prevents business from drifting.

What objectives does the NHS have?

Provide healthcare within a government-set budget.
Immunize a specific population percentage.
Promote lifestyles reducing need for medical treatment.

How would you describe the link between a business’s aims, objectives, and mission statement based on Task 2.2?

Business aims are broad long-term goals.
Objectives are specific, actionable steps to achieve aims.
Mission statement articulates purpose and core values, guiding aims and objectives.

How do objectives differ from aims in business?

Specific, measurable, time-bound.
Break down aims into actionable tasks.
Example: "Increase sales by 10% in the European market."

What personality differences exist between managers in public vs. private sectors?

Public sector managers: Tend to have greater concern for helping others.
Private sector managers: Generally results-oriented, more optimistic, and risk-tolerant.

What should be considered when making ethical business decisions?

Think of short-term vs. long-term business issues.
Follow a strong ethical code in decision-making.
Consider the impact on wages, costs, and international competitiveness.
Recognize potential for good publicity and increased sales.
Understand attraction of ethical customers and employees.

How can businesses ensure they meet their objectives using the SMART criteria?

Specific: Clear on needs.
Measurable: Track achievement.
Achievable: Feasible with resources.
Realistic: Possible with resources.
Time: Deadline set.

What are the objectives of the BBC?

Provide and sell TV and radio shows internationally.
Operate within a government-set budget.
Generate additional revenue through foreign sales.

How do mission, aims, and objectives connect in business?

Chain of command:
1. Mission dictates aims.
2. Aims inform objectives.
3. Objectives are a roadmap to fulfill the mission.

What factors are involved in making ethical business decisions?

Align business objectives with ethics.
Consideration of societal impacts.
Evaluate effects on stakeholders.
Reduce costs ethically.
Prioritize long-term over short-term profits.
Use examples of ethical dilemmas for guidance.

How can businesses benefit from ethical practices?

Reduce legal costs with fewer court cases.
Increase goodwill and customer loyalty.
Gain more government contracts.
Attract well-qualified employees.
Enhance public image and social responsibility.

What are some common objectives in the private sector besides profit?

Growth
Expansion
Survival
Profit maximisation
Profit satisficing
CSR
Increased market share
Positive image
Customer loyalty
Brand recognition

What are the objectives of Network Rail?

Maintain a safe and operational UK railway track system.
Charge train companies rental fees for track use.
No cost to UK taxpayers for track maintenance.

What are the communication objectives in business?

Ensure employees understand the overall plan and individual goals.
Align employee objectives with company targets.
Keep progress updated regularly.
Allow employees to offer feedback and response to change.

What are some ethical dilemmas faced by businesses according to the notes?

Feeding genetically modified food to animals.
Cutting wages to reduce business expenses.
Using child labor.
Creating potentially hazardous products.
Closing factories, affecting workers' jobs.

How do social enterprises balance objectives of public and private sectors?

Mix of private and public sector objectives.
Owned by private individuals.
Profit-driven with social/environmental goals.
Legal commitment to social causes and environmental protection.

What is the purpose of translating objectives into targets and budgets?

Provides a clear plan (budget/financial plan).
Aids in visualizing business/department objectives.
Ensures alignment with goals, e.g., allocating funds for specific growth targets.

How does action influence business objectives and decisions?

Demand for corporate social responsibility (CSR).
Adoption of ethical codes of conduct.
Ethical decisions affect both short-term and long-term terms.
Influences from changing societal expectations.

How should managers approach ethical dilemmas in business according to the text?

Integrate ethics into decision-making.
Consider long-term impacts over short-term gains.
Balance reduced costs with stakeholder interests.
Use legal and ethical standards.
More businesses are considering ethics now.

How do business objectives change over time?

Objectives often evolve with business growth.
New businesses may change after satisfying initial goals.
Economic changes can shift from growth to survival.
Short-term goals may adjust to long-term objectives.

How should a company communicate its objectives?

Publish annual reports with business objectives.
Communicate objectives to both internal and external stakeholders.
Ensure employees understand and align with these objectives.

What is an ethical code of conduct and its importance?

Specifies acceptable behavior.
Employees must adhere to these guidelines.
Guides ethical business decisions, avoiding bribery or unethical promotions.
Helps build trust and integrity within a company.

What are the steps involved in the decision-making framework?

Set SMART objectives
Assess and clarify problem
Gather data to analyse problem
Analyse strategic options
Use appropriate tools to decide
Plan and implement decision
Control and review against objectives
- Internal constraints (e.g., finance)
- External constraints (law, economy, competitors)

What is the role of senior management in setting objectives?

Define overall business objectives.
Set specific and measurable short-term targets.
Align departmental and individual goals with overall objectives.
Adapt objectives to current business environment.

Why is it important to explain business objectives to employees?

Ensures employees are aware and aligned.
Improves commitment to targets.
Fosters a sense of shared goals and motivation.

Provide examples of ethical dilemmas a company might face.

Advertising to children or ensuring parental approval.
Accepting bribes to place orders.
Testing products on animals.
Balancing profit and ethical considerations.

What is the importance of setting clear and realistic business objectives?

Essential for informed decision-making.
Provides focus and direction.
Helps determine business direction and strategy.
Framework for assessing performance and planning improvements.

What happens when objectives aren't communicated effectively?

Employees may not be committed or aligned with goals.
Performance may decrease.
The company may struggle to reach its targets.

What questions might businesses consider in ethical decision-making?

Should youthful targeting be approved by parents?
Is bribery for order placement ethical?
How should animal testing be handled?
Considering societal impact versus commercial gain.

What are the stages of decision-making based on business objectives?

Set objectives for focus and direction.
Identify and clarify the problem.
Gather data and identify solutions.
Assess options' impact on objectives.
Make the strategic decision.

How can clear communication of objectives benefit employees and managers?

Enhances understanding of personal and company targets.
Increases motivation and engagement.
Promotes shared ownership of goals.

What is the purpose of an annual report in a business?

Describes company activities over the year.
Indicates financial accounts.
Is a key internal document for assessments.

How should changes be handled in decision-making processes?

Plan for changes considering business objectives.
Make strategic decisions.
Review outcomes against original objectives.
Continuously refine strategies for future improvements.

What are the roles and limitations of mission statements in business objectives?

Role: Guides, provides specificity, aids in public relations.
Limitation: Lack specificity, may yield similar missions across different businesses, difficult to measure/evaluate.

How are business objectives described in relation to long-term planning?

Objectives are part of a long-term plan.
Provide focus for operations.
Guide strategic decisions.
Essential for individual departments.

What is the purpose of mission statements in business?

Mission statements provide innovation, direction, and motivation.
They define company actions via future strategic planning.
Communication and advertising use mission themes.
Externally, they convey company goals to outside groups.

How do objectives differ from mission statements according to the notes?

Objectives provide specific targets for departments.
Mission statements focus on general aims, often lacking specific measurable details needed to manage the business.

What is the importance of having clear business objectives?

They guide long-term strategies.
Aid in decision-making.
Allow individual departments to align goals.
Prevent strategic decisions from losing focus.

What is the importance of business objectives?

Core control and purpose of a business.
Expressed in aims.
Must be converted into specific, measurable objectives (SMART).
Guide long-term goals.
Not always in precise terms.

How do mission statements influence employee behavior?

Employees align with values in mission statements.
Statements guide moral standards in the workplace.
Associated with positive qualities.
Influence both professional and personal behaviors.

What is the importance of business objectives?

Business objectives are crucial for managing and operating the business.
They transform mission statements into actionable SMART objectives, providing clear guidance for strategies and tactics.

What is the hierarchy of objectives described in the document?

Aim: Overall long-term goal of the organization.
Mission: Core purpose and focus.
Business Objectives: Specific targets for business performance.
Divisional Objectives: Goals set for each division.
Departmental Objectives: Targets specific to departments.
Individual Targets: Personal goals for employees.

What are mission statements, and what is their purpose?

Attempt to condense core purpose.
Not concerned with specific goals.
Describe business's aims in a motivating way.
Create interest from key teams.

What benefits do mission statements provide to businesses externally?

Communicate business vision to external groups.
Aid in advertising and enhancing public awareness.
Inform about company’s role in benefiting other groups.
Increase brand recognition and reputation.

What are the common objectives for profit businesses regarding profit and shareholder value?

Profit and shareholder value are key objectives.
Public sector firms focus on quality rather than profit.
Early-stage businesses prioritize survival.
Well-established firms pursue multiple objectives like growth.

What are some examples of mission statements from various organizations?

College: Academic curriculum and support environment.
Samsung: Human resources and technology for global society.
Huawei: Meet needs in an innovative way.
Microsoft: Empower people and organizations.

What determines business objectives according to the notes?

Business objectives are influenced by various factors:
- Public sector vs private sector
- Business culture
- Ethics
- Number of years in operation
- Size and type of business

How do the objectives of not-for-profit organizations differ from business firms?

Not-for-profit objectives vary significantly.
Public sector firms may emphasize quality and cost reduction.
Example: Public hospitals focusing on patient care instead of profit.

What are SMART objectives in business?

SMART objectives are:
1. Specific: Clear and focused.
2. Measurable: Quantifiable targets.
3. Achievable: Realistic and attainable.
4. Realistic: Feasible when compared with other targets.
5. Time-bound: Defined timeline.

How does business culture influence objectives?

Business culture is the way of doing things shared by all within an organization.
Managers' decisions and adoption of profit objectives vary with culture.
Culture affects response to society's changing needs.

How can the failure rate impact new businesses?

High failure rates lead to priority on survival.
Early-stage businesses tend to focus on costs and sustainability.
Business longevity influences objective setting.

What is the role of public sector businesses?

Serve national interests and government objectives.
Provide a public service to residents.
Support economic and social development.
Achieve government-set targets.
Meet environmental standards effectively.

How should specific and measurable objectives be structured?

Specific: Focus on areas like market share or profit.
Measurable: Use clear metrics.
Example: "Increase sales in the Southern region by 15% this year."

Describe the objectives of newly formed vs. established businesses.

Newly formed businesses prioritize survival, often aiming to survive the first year.
Established businesses focus on profits and satisfying shareholders.
Objectives may shift over time.

How does Figure 4.6 assist managers in developing strategies?

It connects mission statements and objectives.
Helps managers tailor strategies and tactics.
Ensures alignment with organizational goals.

What are the primary objectives of social enterprises?

Economic/Financial: Make a profit to reinvest into the business.
Social: Provide jobs/support to local communities.
Environmental: Protect the environment sustainably.
Referred to as the triple bottom line.

How are public sector businesses different from private enterprises?

Public sector businesses must meet specific objectives and financial targets set by governments.
Prioritize environmental standards.
Lack the same regulatory flexibility as private businesses.

Why is it important for objectives to be realistic?

Ensures that targets align with resources and capabilities.
Prevents setting unachievable goals which can lead to demotivation.
Should be expressed in terms familiar to employees.

What is the role of ethics in setting business objectives?

Ethics revolves around what is considered morally right or wrong in decision-making.
Influences businesses' approach towards society's needs and their own profit objectives.

What are the objectives of private sector businesses according to the notes?

Main objective is to generate profit.
Profits are considered necessary for survival.
Profits lead to return on investment.
Objective could benefit managers with bonuses based on revenue.
Increasing shareholder value through strategies.

What is the significance of the triple bottom line in social enterprises?

Emphasizes economic, social, and environmental objectives.
Many businesses now adopt similar goals.
Not exclusive to social enterprises.
Accompanies CSR objectives.
Balances profit with broader impact.

Describe the characteristics of SMART objectives.

Specific: Clear goals.
Measurable: Track progress.
Achievable: Realistic aims.
Relevant: Aligns with core values.
Time-bound: Set deadlines.

Why must business objectives be time-bound?

Provides a clear timeframe for achieving goals.
Allows assessment of success within set limits.
Example: "Increase profits by 5% over the next three years."

How does the public or private sector affect business objectives?

Public sector focuses on service provision.
Private sector prioritizes profit.
Objectives change based on sector differences.

What is the importance of business objectives?

Objectives provide purpose and direction.
Private sector goals often focus on maximizing shareholder returns.
Social responsibility is emphasized to protect company reputation.
Key objectives include social, environmental, and financial goals.

What is a social enterprise based on the notes?

Social enterprises focus on reinvesting profit to benefit society.
Triple bottom line: economic, social, environmental goals.
Aim to address social issues through business models.
Balance between profitability and social/environmental impact.

Why are SMART objectives important for businesses?

Facilitate clear goal setting.
Enable effective tracking and evaluation.
Improve alignment with business strategies.
Help in setting realistic benchmarks.

Explain the impact of a business's years in operation on its objectives.

Longevity in business influences objectives.
Newer companies focus on survival.
Older firms may concentrate on profit or expansion.

What are the key topics covered in Chapter 7 about business objectives and decisions?

Importance of business objectives: Drives direction.
Objectives of private-sector businesses: Focus on profit and market share.
Growth: Reflects business success.
Failure rates: High for start-ups; survival needs attention.
Long-term objectives: Essentials for sustainability.

How do businesses demonstrate social responsibility?

Setting social and environmental objectives.
Legal standards vary nationally and internationally.
Public pressure influences decision-making.
Considering the impact on society, employees, and community.

How do businesses balance conflicting objectives?

Balancing strategies required to satisfy different stakeholders.
Focus on long-term growth and sustainability.
Conflict between shareholder interests and other stakeholders.
Consider impacts on profits and overall business health.

What are some difficulties in assessing profit as a business objective?

Assessing profit maximization is challenging.
It requires understanding if maximum profit has been achieved.
Negative consumer reactions may occur.
Profits should cover business risks.
Consider changes over time.

How are growth and market share related to business success?

Growth: Indicates success, removes competitors.
Market share gain: Enhances brand visibility.
Economies of scale: Achieved with growth.
Brand trust: Increased with market presence.
Profitability: Higher sales lead to greater profits.

What role do pressure groups play in business objectives?

Pressure groups influence policies by creating public awareness.
Aim to change business practices and government regulations.
Focus on societal issues that businesses may impact or benefit.

What are the objectives of private sector businesses according to the notes on business objectives and decisions?

Profit maximization: Important for rewarding investors.
Growth: Helps in long-term sustainability.
Survival: Particularly in competitive environments.
Increase market share: Focused on maximizing sales.
Social responsibility: Includes job security and environmental protection.

What is meant by keeping a business at a "satisfactory" profit level?

Aim to attain enough profit for survival.
Enough to satisfy owners and investors.
Balances between growth and risk.
Maximizes profitable output without overextending resources.

What are the challenges new businesses face, according to the notes?

High failure rate: Many new businesses fail.
Survival focus: Essential for first few years.
Long-term goals: Necessary after stabilization.
Adaptability: Needed for changing markets.
Sustainability: Long-term planning required.

What are the trends towards corporate social responsibility?

Increasing awareness in society about the impact of business activities.
Positive reputation benefits with customers and stakeholders.
Globalization emphasizes ethical standards.

How do private sector businesses assess performance and balance objectives?

Performance assessment: Return on capital employed is key.
Balancing objectives: Profit may be prioritized, but other factors like social responsibility and environmental protection can modify decisions.

What are some potential benefits of business growth?

Access to economies of scale.
Increased profits.
Higher salaries.
Job creation.
Competitive advantage.
Motivates staff.
Enhances market presence.

Why is sustaining long-term business objectives crucial?

Longevity: Ensures business survival.
Stability: Reduces risk of failure.
Success: Achieves continued growth and development.
Adaptation: Helps in responding to market changes.
Trust: Builds customer and client confidence.

What possible drawbacks can result from rapid business expansion?

Overexpansion risks.
Strain on resources.
Cash flow problems.
Difficulties in management.
May lead to loss of control.
Potential quality issues.

Business Objectives and Business Decisions

157 important questions on Business Objectives and Business Decisions

What role do pressure groups play in business ethics?

What are common areas where ethics are tested in business?

How does consumer action influence business ethics?

What are the benefits of behaving ethically for a business?

Why is ethical consideration important for businesses in their supply chain?

What are the advantages of adopting ethical business behavior?

What must ethical businesses be concerned with in the supply chain?

What are the possible drawbacks of behaving ethically?

How does consumer activism impact business ethics?

What are the disadvantages of ethical business practices?

What is the relationship between business ethics and CSR?

How do pressure groups influence businesses regarding ethics?

What are some essay questions related to business ethics?

What do ethical codes of practice typically cover?

What are some ways consumers can take action against unethical businesses?

In which areas are business ethics commonly tested?

What is the impact of short-termism on corporate objectives?

How does ethical behavior differ from lawful behavior?

How does the economic environment affect corporate objectives?

What factors influence business ethics?

What are some unethical supply chain practices?

What are some internal influences on corporate objectives?

What are internal influences on corporate objectives?

How can the political/legal environment impact corporate objectives?

What is the difference between strategy and tactics in business?

What are external influences on corporate objectives?

In what ways do competitors influence corporate objectives?

What elements are included in strategic vs. tactical business theory?

How do social and technological changes affect objective setting?

What is business strategy according to Johnson and Scholes?

What characterizes business tactics?

What are some examples of strategy versus tactics used by companies?

What is the hierarchy of objectives in business as described?

What factors are involved in a business strategy?

What are business objectives and their main functions?

How should corporate objectives feed into functional objectives?

What are the components of SMART objectives?

What are typical corporate objectives?

What does the SMART acronym help management achieve?

What does the acronym "SMART" stand for in setting business objectives?

What are some example functional objectives aligned with corporate objectives?

What is the relationship between corporate and functional objectives as depicted?

What are functional objectives?

What are some examples of corporate objectives related to market standing?

What are the purposes of corporate objectives?

What are corporate objectives?

What is an example of a corporate objective focusing on productivity?

What is the corporate objective shown in the hierarchy example?

Name some objectives under physical and financial resources for corporations.

What is the functional objective in the hierarchy example?

List examples of profitability-related corporate objectives.

What is the hierarchy of objectives?

What is the unit objective in the hierarchy example?

What management-related objectives might a corporation have?

What is the role of a business's mission?

What are corporate objectives concerning employees?

How does a vision differ from a mission?

Describe public responsibility as a corporate objective.

How are objectives different from aims or goals?

What are some examples of mission statements?

What is the purpose of a mission statement?

What are common criticisms of mission statements?

What are the main organizational aims and objectives of public vs. private sector organizations in the UK?

What is a mission statement not intended to be?

How are a business’s mission statement, aims, and objectives structured?

How do organizational stakeholders and expectations differ between public and private sectors?

What is the hierarchy of objectives related to a mission statement?

Who are the key audiences for a mission statement?

What is Corporate Social Responsibility (CSR) and why are firms adopting it?

What defines a business’s core purpose and values?

What are the levels of public scrutiny for public and private sector organizations?

What makes a good mission statement?

What are the objectives of public-sector businesses?

How do business objectives change over time, particularly for new companies?

How does the impact of external environment differ between public and private sectors?

What is the purpose of a mission statement in private-sector businesses?

What objectives does the NHS have?

How would you describe the link between a business’s aims, objectives, and mission statement based on Task 2.2?