Term
| What are the possible problems faced by new business start-ups? |
|
Definition
- Lack of finance
- Cash flow problems
- Marketing problems
- Unestablished customer base
- People management problems
- Legalities
- Production problems
- High costs of production
- Poor Location
- External influences
|
|
|
Term
| What are profit-based organisations? |
|
Definition
- Sole traders
- Partnerships
- Private Limited Companies
- Public Limited Companies
|
|
|
Term
| What are the non-profit organisations? |
|
Definition
- NGOs
- Charities
- Pressure Groups
|
|
|
Term
| Why are business objectives important? |
|
Definition
- Give direction, purpose, unity
- Aid in decision-making
- Measurement tool
- Planning
|
|
|
Term
| What is the difference between a mission and a vision statement? |
|
Definition
A mission statement is a simple declaration that broadly states the underlying purpose of an organisation's purpose.
A vision statement outlines the business aspirations and is often an "ideal" scenario. |
|
|
Term
| What is the difference between aims and objectives? |
|
Definition
Aims are the general long term goals of an organisation.
Objectives are short-term and more specific goals of an organisation based on the aims. |
|
|
Term
| What is the difference between tactics and strategies? |
|
Definition
Tactics are the short-term ways that firms can achieve objectives.
Strategies are long-term aims the company wishes to achieve. |
|
|
Term
| What are tactical (operational) objectives? |
|
Definition
Short-term objectives that affect a segment of the organisation such as a department.
Example: survival, sales revenue maximisation. |
|
|
Term
| What are strategic objectives? |
|
Definition
Longer term aims of a busines organisation.
Examples:
- Profit maximisation
- Growth
- Image and reputation
- Market Standing
|
|
|
Term
| What are ethical objectives? |
|
Definition
The moral principles that guide decision-making and strategy (ie: what is deemed to be "right" and "wrong").
Examples:
- Reducing pollution
- Increase recycling
- Disposal of waste
- Staff conditions
- Fair trade conditions
|
|
|
Term
| What are examples of unethical business behaviour? |
|
Definition
- Financial dishonesty
- Environmental neglect
- Exploitation of workforce
- Exploitation of suppliers
- Exploitation of consumers
|
|
|
Term
| What are the advantages of ethical behaviour? |
|
Definition
- Improved corporate image
- Increased customer loyalty
- Cost cutting
- Improved staff motivation
- Improved staff morale
|
|
|
Term
| What are the disadvantages of ethical behaviour? |
|
Definition
- Compliance costs
- Lower profits
- Stakeholder conflict
|
|
|
Term
| How can a business try to meet its social responsibilities? |
|
Definition
- Accurate information & labelling
- Active community work
- Environmental consideration
- Fair employment practices
|
|
|
Term
| What is corporate social responsibility? |
|
Definition
| Socially responsible firms are businesses that act morally towards their stakeholders. |
|
|
Term
| What are the attitudes behind CSR? |
|
Definition
- Free market (non-compliance)
- Altruistic
- Strategic
|
|
|
Term
|
Definition
| An independent assessment of how a firm's actions affect society. |
|
|
Term
| What is an environmental audit? |
|
Definition
| An independent review of a firm's activities that examines only the impacts on the environment. |
|
|
Term
|
Definition
| Any individual or organisation that has a direct interest in the activities of a business. |
|
|
Term
| Who are internal stakeholders? |
|
Definition
- Employees
- Shareholders
- Managers and directors
|
|
|
