Aims and Objectives
What is the difference between an aim and an objective?
An aim is a general statement of a business's goals. An objective is a more specific goal that allows the business to reach its aims.
What is meant by the term stakeholder?
Any group interested in the activities of a business
Give 2 factors that influence the decision of business location
Raw materials
Proximity to market
Costs
Competition
Labour
What is a business plan?
A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts.
What is the difference between fixed and variable costs?
What is a SMART objective?
Specific, Measurable, Agreed, Realistic, Time-specific
Give 3 examples of stakeholder groups
Shareholders
Employees
Customers
Local community
Government
Banks
Competitors
Give an example of a business that would locate close to the customers
Restaurant
Cafe
Supermarket
Clothing store
The idea
Objectives
Finance required
Market overview
Operations
Cash flow forecast
Forecast profits
Define revenue and costs
Revenue is the income a business earns over a period of time.
Costs are what the business pays to run.
Give an example of a business objective
Survival
Profit maximisation
Market share
Growth
Rewards, including basic pay and other financial
incentives
Job security & working conditions
Promotion opportunities + job satisfaction
What factor would be most important when choosing a location for a law firm?
Access to skilled labour
Give one advantage and one disadvantage of a business plan
Advantages: reduces risk, helps secure finance, allows business to review progress, more likely to be profitable
Disadvantages: time consuming, overestimating sales, missed opportunities
How do you calculate profit?
Revenue - costs