3.1 Business objectives and strategy

Question 1

3.1.1

What is the definition of a mission statement ?

Answer 1

An expression of a business’s overall aim as well as its core values and context

Question 2

3.1.1

Who are the 4 key audiences for a mission statement?

Answer 2

• Employees
• Customers
• Society
• Investors

Question 3

3.1.1

A mission statement is NOT:

Answer 3

• a statement of goals and objectives
• a statement of core values
• a statement of how a business intends to compete or position itself in the market

Question 4

3.1.1

What makes a good mission statement?

Answer 4

• a clear sence of business purpose
• excites, inspires, motivates and guides
• easy to understand and remember
• differentiates businesses from competitors
• for all stakeholders - not just shareholders and managers

Question 5

3.1.1

What are common critisisms of mission statements?

Answer 5

• not always suppoted by the business
• often too vague and general
• often merely statements of the pbvious
• may just be promotion
• sometimes regarded cynically by staff
• to be effective, everyone in the business has to buy in

Question 6

3.1.1

What is an objective?

Answer 6

Statements of specific outcomes that are to be achieved

Question 7

3.1.1

Business objectives are:

Answer 7

• the specific intended outcomes of a business strategy
• targets which the businesses adopts in order to achieve its aims

Question 8

3.1.1

What is a corporate objective?

Answer 8

Those that relate to the business as a whole

Question 9

3.1.1

What is the purpose of corporate objectives?

Answer 9

• provides strategic focus
• measures performance of the firm as a whole
• inform decision making
• set the scene for more detailed functional objectives

Question 10

3.1.1

What are key areas for corporate objectives?

Answer 10

• Innovation
• Market
• Productivity
• Physical and financial resources
• Profitability
• Management
• Employees
• Public responsibility

Question 11

3.1.1

What is a functional objective?

Answer 11

The day to day goals of functions or departments within the business, obtained from corporate objectives

Question 12

3.1.1

What does S.M.A.R.T stand for?

Answer 12

S - specfic
M - measureable
A - achievable
R - relevent
T - time bound

Question 13

3.1.1

What does the S mean in S.M.A.R.T?

Answer 13

Specific - Businesses should state what is to be achieved

Question 14

3.1.1

What does the M mean in S.M.A.R.T?

Answer 14

Measureable - Objectives should be capeable of measurement

Question 15

3.1.1

What does the A mean in S.M.A.R.T?

Answer 15

Achievable - objectives should be realistic

Question 16

3.1.1

What does the R mean in S.M.A.R.T?

Answer 16

Relevent - objectives should be relevent to the people responsible for achieving

Question 17

3.1.1

What does the T mean in S.M.A.R.T?

Answer 17

Time bound - objectives should be within a realistic time frame

Question 18

3.1.1

What is the order of the hierarchy of business objectives?

Answer 18

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Question 19

3.1.2

What is the definition of Ansoffs Matrix?

Answer 19

A marketing planning model that helps a business determine its product and market strategy

Question 20

3.1.1

What is an aim?

Answer 20

An overall vision and describes the businesses reason for being

Question 21

3.1.2

What is the definition of market development?

Answer 21

A growth strategy where a business aims to sell exisiting products into new markets

Question 22

3.1.2

What are 3 approaches to market development?

Answer 22

• new geograpahical markets
• new distriubtion channels
• different pricing policies

Question 23

3.1.2

What is the definition of product development?

Answer 23

A growth strategy where a business aims to introduce new products in existing markets