Business Objectives And Strategies

Question 1

What is a stakeholder

Answer 1

Person who has an interest in the success of a business
Internal or external

Question 2

Stakeholder objectives

Answer 2

Owners- make profit, survival, growth
Employees- high wage, job security, training
Customers- good quality products ,reasonable prices, customer service
Suppliers- regular pay, regular customers
Lenders- bank agreed amount back on time
Community- jobs, no noise, decreased social costs and pollution
Government- taxes, job opportunities

Question 3

What is social benefits

Answer 3

Private benefits and external benefits

Question 4

What is social costs

Answer 4

Private costs and external costs

Question 5

What is a mission statement

Answer 5

Gives idea of what business wants to do
Benefits of all stakeholders
Intended to appeal to employees and customers
Qualitative statement
Form of marketing

Question 6

Aims / goals

Answer 6

More specific than mission statement
Survival
Break even
Shares of market / growth

Question 8

Objectives

Answer 8

Achieving aims by making specific objectives
Sense of direction
Help control existing and future operations

Question 9

Strategic objectives

Answer 9

To achieve main aims business adopts a plan that contains several strategic objectives
E.g increase productivity to reduce costs

Question 10

Tactical objectives

Answer 10

Short term objectives
Day to day activities

Question 11

SMART target

Answer 11

Specific- important everyone understands the targets
Measurable- objective statement should contain measurement to see if it fails
Agreed- agreement between different departments
Realistic- able to achieve objective
Time bond- timetable specifying period which objective is to be achieve

Question 12

Internal constraints

Answer 12

Lack of finance to meet chosen objectives
Poor communication within business
Conflict of interest

Question 13

External constraints

Answer 13

Changes in laws
State of economy
Behaviour of competitors

Question 14

Corporate objectives

Answer 14

Sense of direction for business and help define culture which it organised

Question 15

Social objectives

Answer 15

Help environment
Business can satisfy social objectives
Environmentally friendly

Question 16

Changing objectives

Answer 16

Overtime circumstances change

Question 17

Communication of objectives

Answer 17

Communicate objectives clearly