business objectives and strategies Flashcards
(14 cards)
What is the purpose of aims and objectives in business strategy?
They guide the business’s overall direction, focusing efforts and resources toward a common purpose.
What is the order in the hierarchy of objectives?
Aims → Mission Statement → Corporate Objectives → Functional Objectives
How does a business’s mission relate to its aims?
The mission flows from the overall aim and expresses it in inspirational terms.
What do corporate and functional objectives stem from?
They are derived from the mission statement.
What is a business aim?
A long-term vision or reason for being.
What is a mission statement?
It expresses the overall aim, core values, and purpose in an inspirational way.
What is a corporate objective?
Specific performance goals set by senior management based on the firm’s mission.
What is a functional objective?
Day-to-day goals of departments aligned with corporate objectives.
What does SMART stand for?
Specific, Measurable, Agreed, Realistic, Time-bound
Why should businesses critically assess mission statements and aims?
To ensure they reflect the current corporate vision and trading environment.
What influences changes in corporate aims?
Social attitudes, norms, and new opportunities or threats.
Why are some mission statements criticized?
They may serve as PR tools rather than guiding strategy (e.g., KFC 2013 example).
What should businesses consider before revising aims/mission?
If strategies align, if objectives are realistic, and if communication with stakeholders is effective.
Why involve stakeholders in revising mission/aims?
It ensures broader input and can enhance alignment and publicity.
