Edexcel Business A Level Revision

Business Objectives - is a goal set by a business, usually in the medium to long term. They can be set at any level of the business and can cover financial and non-financial issues important to the business's success Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific) Mission statement - is a short term statement of the company's vision and values which helps to set aims and objectives. This enables employees, managers and customers and possible some suppliers to understand the conduct of the business. It is a statement of purpose, such as 'grow our market share in the UK'. Nike's mission statement is; "To bring inspiration and innovation to every world athlete". Aim - is a generalised statement of what the business plans to achieve in the longer term. A goal or purpose of the business for the future, to inspir...

Historical figures - budget initially based on the figures from previous period (year) Extrapolation - means assuring that past trends will continue into the future. It must be used with care because changes in business conditions may require adjustments to be made. For an existing business it may be best to produce a budget based on previous figures, such as last year's sales and costs. This approach uses extrapolation to model the next year's targets As the product moves through its life cycle, it places different demands on budgets, for example less adverting may be needed. Allowances need to be made for inflation, to ensure estimates are correct Sales figures can be unpredictable  Costs may not be the same Economic variables such as the business cycle can affect budget figures Unforeseen events such as the euro crisis can affect budgets.  A historical budget is realistic in that it is based on actual results, HOWEVER, circumstances may have changed (e.g. new ...