7.1a Mission Statements

Question 1

Corporate plan definition

Answer 1

Program that sets out how a business will achieve its objectives

Question 2

Mission statement definition

Answer 2

The means of communicating to key stakeholders what the organisation is doing and what it ought to be doing

Question 3

Is a mission statement a qualitative or quantitative statement?

Answer 3

Qualitative

Question 4

What is the mission chosen based on?

Answer 4

• Size of business
• Range of activities
• External factors

Question 5

What are the two types of objectives business objectives can be?

Answer 5

Corporate objectives or functional objectives

Question 6

Where are corporate objectives drawn from?

Answer 6

The mission statement or corporate aims

Question 7

Are corporate objectives short term, medium term, or long term?

Answer 7

Medium to long term.

Question 8

Corporate objectives examples

Answer 8

• Increase market share

- Meet stakeholder needs

Question 9

Internal factors on corporate objectives

Answer 9

• Business ownership - profit making or non-profit making
• Power of stakeholders
• Ethics

Question 10

External factors on corporate objectives

Answer 10

• PESTLE

- Competitors

Question 11

Functional areas of a business

Answer 11

• Marketing
• Operations
• Finance
• HRM

Question 12

Reasons to make short term changes

Answer 12

• Maximise profit quickly

- May take a long-term approach to focus on the bigger picture

Question 13

Influences on objectives

Answer 13

• Financial crisis - business has to focus on survival rather than growth
• Government policy
• Negative publicity