Business
- Created by: Sarah-Beth
- Created on: 21-04-12 21:34
Key words:
Aim – long term targets of the business
Breakeven – where total costs equals’ total revenue
Objective – short term ‘stepping stones’ on the way to aims
Changing aims and objectives
- Different depending on size of business
- Different depending on the market it is in
- Different depending on the point it has reached in terms of growth
Initial aims for a small business are to:
- Survive
- Breakeven
- Gain independence
Growing businesses may want to:
- Increase Profits
- Increase Market share
- Produce a larger range of products
- Market leadership – becoming the dominant business in its market – more control
Dominance can be bad for other businesses competing in the same market and, in the long run, bad for consumers
Expansion overseas:
- May face problems
- Language
- Communication
- Currency
- Different laws
- Try to overcome problems because of the advantages brought by international expansion
- Lower production costs
- Cheaper labour
- Power costs
- Lower transport costs
- Access to wider markets
Ethics and the Environment
Key words:
Carbon footprint - the amount of carbon (and therefore environment damage) released through an activity
Environmentally friendly - not harming the environment
Social costs - costs that affect the whole community, such as pollution
Advantages of being environmentally responsible:
- Greater efficiency
- Lower costs
- Increased custom that comes…
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