7 - Mission, Corporate Objective & Strategy Flashcards
(13 cards)
What Is Meant By ‘Tactics’?
(2 Points)
~ Short term plans for implementing strategy.
~ Determines how the strategy will be executed.
What Is Meant By ‘Strategy’?
Long term objectives, on how to meet the businesses corporate objectives.
What Is Meant By ‘Mission’?
Overall reason for the businesses existence.
What Are Influences On The Mission Of A Business?
(5 Points)
~ Value and objectives of leaders.
~ Business ownership.
~ Value and power of stakeholders.
~ Nature of the industry.
~ Degree of competition.
What Is A Mission Statement?
Is a written statement, stating the purpose of an organisation, so that stakeholders understand its intent.
What Is The Layer Below The Mission Statement?
Corporate objectives.
What Are Corporate Objectives?
(3 Points)
~ Define the overall objectives of the business in the short to medium term.
~ Driven by the mission statement.
~ Drives the functional objectives.
What Are Functional Objectives?
Define the objectives of each department of the business.
What Are The Influences On The Corporate Objectives Of A Business?
(3 Points)
~ Short termism.
~ Ownership.
~ Internal and external environment.
Describe ‘Short Termism’ As An Influence On The Corporate Objectives
(2 Points)
~ Pressure on a business to perform in the short term. E.g. To maximise profits and shareholder returns.
~ May be at the cost of long term growth. E.g. If profits are used for dividends, instead of reinvestment.
What Is SWOT Analysis?
(2 Points)
~ A strategic planning tool, used before a business develops a strategy.
~ Tool used to help plan a strategy and inform decision making.
What Does SWOT Stand For?
(4 Points)
~ Strengths, can be influenced.
~ Weaknesses, can be influenced.
~ Opportunities, beyond control.
~ Threats, beyond control.
What Does SWOT Analysis Help To Do?
(4 Points)
~ Maximise strengths.
~ Minimise weaknesses.
~ Take advantage of opportunities.
~ Avoid threats.
