3.7 - 4.0

Question 1

Advantages of Mission Statement

Answer 1

Mission Statements communicate the purpose of the business as well as the values the business has.
They are used to measure goals.

Question 2

What factors affect a mission statement

Answer 2

• A Size of a business e.g a small business will have a mission that reflects the interests of the owner.
• Changes Over time
• External Factors : Competition, Economic Climate and Regulation
• A Businesses strengths

Question 3

Internal Influences on objectives of a business

Answer 3

• Whether a business is a non profit or profit making business
• The Power Of stakeholders
• If a business is ethical it may affect the profitability of a business

Question 4

External Influences on objectives of a business

Answer 4

Pressure for short termism - Shareholders will demand short term profit so they can get paid higher dividends. Therefore there will be more importance of short term objectives rather than long term objectives.

Question 5

What is SWOT Analysis

Answer 5

SWOT Analysis is a four factor model that details the strengths, weaknesses, opportunities and threats.

Question 6

What are the aims of SWOT analysis

Answer 6

In what areas does the business have a competitive advantage.
What competitors do better than the business.
Whether the business is making the most of the opportunities they have.

Question 7

Advantages of SWOT analysis

Answer 7

It can be easily redone to take into account changing economics conditions or unforeseen events.
Also Allows a business know where it has a competitive advantage the business can then change its strategy to focus on these elements