Lernmaterialien für Business an der University of Abertay Dundee

• Survival 
• Cash flow (liquidity)
• Profit (where total rev>total costs)
• Growth 
• Social and ethical objectives

1. Mission statement ( vague )
2. Corporate aims  ( medium-term aims )
3. Corporate objectives ( specific )
4. Functional objectives ( specific )

• Profit ( total rev > total costs)  
  • e.g Reduce packaging costs by 20% by end of 2017
• Growth 
  • e.g Open 5 new branches across south west England by 2023

• Stepping stones to fulfill purpose
• Provides clear goal
• Provides a framework for decision making 
• Motivational 
• Used to judge progress against
• Provide incentives

• Costs that change directly in proportion to output
  • E.g 
    • Raw materials 
    • packaging
    • Wage of staff

• Income received from organisations activity
  • Total rev = price per unit X quantity of units sold

Variable cos per unit X output

• Costs that remain constant regardless of output.
  • E.g
    • Loan repayment
    • rent 
    • salaries
    • vehicles
    • marketing
    • heating/lighting

1. mission statement - overall purpose of business
2. Corporate aims - medium to long term goals that will enable a business to achieve its mission 
3. Corporate objectives - short term goals that will enable company to achieve their aims 
4. Functional objectives - specific targets set out for each functional area