3.1.1 Corporate Objectives Flashcards Preview

Business > 3.1.1 Corporate Objectives > Flashcards

Flashcards in 3.1.1 Corporate Objectives Deck (11)
Loading flashcards...
1
Q

Corporate Aims

A

Long term intentions of the business

2
Q

Corporate Objectives

A

Targets that must be achieved in order to realise the aims of the business.

3
Q

Mission Statement

A

States key activity and purpose of an organisation. Includes corporate aims and objectives.

4
Q

Critical Appraisal of Mission statement

A

Use SMART to evaluate mission statements.

5
Q

SMART

A
Specific 
Measurable 
Attainable 
Realistic 
Time
6
Q

Factors that effect business choosing short or long term objectives

A
Financial position 
Market position 
Economic conditions
Government policy 
Social change
7
Q

Common objectives

A
Profit 
- priority for private sector 
Growth 
Social considerations 
Employee wealth fare
8
Q

Conflicting Objectives

A

Growth Vs Profit
- has to spend money to grow, looses profit

Profit Vs Employee wealth fare
- spend money on employee wealth fare, looses profit

9
Q

Stake holder

A

People affected by the actions of a business

  • employees
  • local community
  • customers
  • suppliers
10
Q

Shareholders

A

Someone who invested money into a business and gained shares. Profit driven

11
Q

Stake holders conflicting interests…

A

Shareholders Vs Local community
- not really profitable to help

Shareholders Vs Suppliers
- to increase profitability supply prices would decrease

Shareholders Vs Employees
- additional training will cost extra decreasing profitability