What’s business

Businesses exist in order to achieve business objectives 

Business objectives

• Profit
• Growh 
• Survival 
• Cash flow
• Social 
• Ethical 

SMART objectives 

• Specific 
• Measurable 
• Achieveable 
• Realistic 
• Timed 

Mission statement : overall reason for the business' exisitence 

Corportate aims: the long-term targets and plans to fulfil the mission statement 

Corporate objectives: the medium to long-term quantifiable targets to fulfil the mission statement 

FunctIonal objectives: The object tips of each department. They are more detailed than corporative objectives and are more specific to each department.

Corporate strategy: the actions to be taken by the business to achieve the objectives 

Business tactics: actions taken on a day to day basis to support the strategy 

Why do businesses create objectives:

• Common sense of purpose 
• Motivate employees 
• Create reward systems 
• Measure and review performance 
• Inform decisions to improve performance 

Profit = total revenue - total costs 

Fixed costs stay the same regardless of the output 

Variable costs change in relation to the number of items produced

Total costs are fixed costs plus…