UNIT 1: 1.3 Business objectives

Question 1

Mission statement

Answer 1

A statement of the business’s core aims, phrased in a way to motivate employees and to stimulate interest from outside groups.

-“who are we and what do we do”
- central purpose condensed into short appealing paragraph

EXAMPLE -Google: ‘To organise the world’s information and make it universally accessible and useful’

Question 2

Vision statement

Answer 2

a statement of what the organisation would like to achieve or accomplish in the long term

• describes picture of “preferred future”

EXAMPLE: To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles

Question 3

Corporate aims

Answer 3

the long-term goals which a business hopes to achieve

e.g. to increase shareholder returns each year through business expansion

Question 4

Business objectives should be SMART

SMART?

Answer 4

Specific
Measurable
Achievable
Realistic and relevant
Time-specific

Question 5

Market share

Answer 5

sales of the business as a proportion of total market size, in a given period

-way of assessing business growth
-indicates more success than competitors

Question 6

Shareholder value

Answer 6

the financial gains received by the owners of a company’s shares

Question 7

Business objectives

Answer 7

short or medium term goals or targets which must be achieved in order for an organisation to achieve its overall corporate aim

Question 8

BUSINESS OBJECTIVE: Profit objective

Answer 8

• essential for rewarding investors and financing further growth

Question 9

BUSINESS OBJECTIVE: Growth objective

Answer 9

-need to grow for a competitive edge

Question 10

BUSINESS OBJECTIVE: Ethical objectives

Answer 10

• moral guidelines that are targets based on a moral code for the business

ethics= moral guidelines that determine decision-making

Question 11

Strategic objectives

Answer 11

a long-term target for the whole organisation, designed to achieve the corporate aim

Question 12

Tactical objectives

Answer 12

a short-term target aimed at resolving a particular problem or meeting a specific part of a longer-term strategic objective

Question 13

Stakeholders

Answer 13

People or groups with a vested interest in any action taken by an organisation, affected

Question 14

Corporate social responsibility (CSR)

Answer 14

businesses that consider the interests of society by taking responsibility for the impact of their decisions and activities on consumers employees and the environment