Business Objectives and strategy

Question 1

what is a mission statement?

Answer 1

a statement which sets out the purpose of the business to all it’s stakeholders

Question 2

what are corporate aims and goals?

Answer 2

They are ways to help achieve the mission statement

Question 3

Corporate aims and goals depend on what 3 things?

Answer 3

age
size
market

Question 4

what are corporate objectives strategies?

Answer 4

Objectives that the whole business aim towards

Question 5

what are department objective strategies?

Answer 5

They are objectives for each department to achieve to achieve the overall objective

Question 6

why might stakeholders create conflict?

Answer 6

Because they do not agree with the aims of the business

Question 7

what 3 things demonstrate a culture within a business?

Answer 7

the recruitment process
how long employees stay
personality of the team

Question 8

what 3 things will a business have if they have a strong culture?

Answer 8

staff understand and respond to culture
consistent behaviour within the team
little need for policies

Question 9

what 2 things will a business have if they have a weak culture?

Answer 9

inconsistent behaviour

little alignment with business values

Question 10

why is culture important?

Answer 10

because it influences all the business (pervasive)

Question 11

what does SMART stand for?

Answer 11

specific 
measurable
achievable
realistic 
time related

Question 12

what are the four types of corporate culture?

Answer 12

power
task
person
role

Question 13

what is a power culture?

Answer 13

control radiates from within

autocratic

Question 14

what is a role culture?

Answer 14

bureaucratic

don’t work with others in different departments

Question 15

what is task culture?

Answer 15

project orientated
small teams working together on a project
laissez faire

Question 16

what is person culture?

Answer 16

runs own business

e.g. doctor

Question 17

what are 3 ways in which you can minimise risk?

Answer 17

emergency funding
back up data
insurance

Question 18

Describe the decision making process

Answer 18

identify objectives
collect information and ideas
analyse
choose a course of action
carry out decision
outcome
evaluate and report

Question 19

what is an intuitive decision?

Answer 19

decisions made by gut-feeling. Based on past experiences

Question 20

what is a strategic decision?

Answer 20

high risk decision. About the bigger picture

Question 21

what is a tactical decision?

Answer 21

how to achieve the decision

Question 22

what is an operational decision?

Answer 22

decisions made everyday, low risk decisions

Question 23

who is likely to make a strategic decision?

Answer 23

owners or board of directors

Question 24

who is likely to make a tactical decision?

Answer 24

managers

Question 25

who is likely to make an operational decision?

Answer 25

employees or supervisors

Question 26

how much resources are needed to make a strategic decision and what is an example of a strategic decision?

Answer 26

A lot is needed | e.g. whether to merge

Question 27

how much resources are needed to make a tactical decision and what is an example of a tactical decision?

Answer 27

Some resources | e.g. introduce new working arrangements

Question 28

how much resources are needed to make an operational decision and what is an example of an operational decision?

Answer 28

not a lot | e.g. when to go to lunch

Question 29

what are the 3 types of constraints on decision making?

Answer 29

internal external quality of decisions

Question 30

what are two example of internal restraints to decision making and explain them?

Answer 30

People's behaviour- chose not to do it and so wont work. Ability of finance- wanting to take over and not being able to afford it ,for example. This limits the decisions available.

Question 31

what are two example of external constraints on decision making and explain them?

Answer 31

competitors- copying so customers don't go there because they already have a place to go. Lack of technology- technology not designed to be able to make these decisions

Question 32

what are two example of quality of decisions constraints and explain them

Answer 32

how big is the risk?- big=more time needed | human element- they can make mistakes or can let emotions get the better of them e.g. firing employees

Question 33

what is a SWOT analysis?

Answer 33

a strategic planning tool that separates influences on a business's future success into internal and external factors

Question 34

what does SWOT mean?

Answer 34

strengths weaknesses opportunities threats

Question 35

Which of SWOT is internal?

Answer 35

strengths and weaknesses

Question 36

which of SWOT is external?

Answer 36

opportunities and threats

Question 37

what 2 things does a SWOT analysis allow you to do?

Answer 37

overcome weaknesses with strengths | define realistic goals

Question 38

what are 2 strengths of a SWOT analysis?

Answer 38

identifies it's weaknesses | easy to completer and understand

Question 39

what are 2 weaknesses of a SWOT analysis?

Answer 39

doesn't provide solutions | not all the information is useful

Question 40

what is porter's 5 forces?

Answer 40

a framework to analyse the level of competition within an industry and gives an overview of that industry

Question 41

what are the 5 key areas of porter's 5 forces?

Answer 41

``` the threat of entry the power of buyers the power of suppliers the threat of substitutes competitive rivalry ```

Question 42

give an example that could be a threat of entry

Answer 42

established brand names

Question 43

give an example that is a power of buyers

Answer 43

there are channels of distribution; - modern - traditional - direct

Question 44

give an example that is threat of substitutes?

Answer 44

other similar products in the industry; tea coffee juice etc

Question 45

give an example of power of suppliers

Answer 45

raw materials; water gas

Question 46

give an example of competitive rivalry

Answer 46

Duopoly; competition between 2 having the market share

Question 47

what is organic growth?

Answer 47

a company is growing organically when it is increasing the turnover of it's existing business.

Question 48

what is external growth?

Answer 48

a company is growing by acquiring other companies

Question 49

what is 3 reasons why you would want to grow?

Answer 49

generate more sales/profit economies of scale employ more people

Question 50

what are 3 ways in which organic growth can be achieved?

Answer 50

opening up a new shop/warehouse expanding your existing product range increasing output

Question 51

what are 3 problems associated with organic growth?

Answer 51

slower more gradual market wont allow it-not enough room, competitors

Question 52

what is a benefit of a external growth?

Answer 52

fast expanison

Question 53

what are 3 problems with external growth?

Answer 53

job losses different cultures mean it is difficult to match up disagreements between managers

Question 54

what is a hostile takeover?

Answer 54

buying shares without consent?

Question 55

what is a friendly takeover?

Answer 55

buying shares with company knowledge

Question 56

what is a de-merger?

Answer 56

a joint company split to form 2

Question 57

what is management buy outs?

Answer 57

managers buy out directors so they own the company

Question 58

what is management by ins?

Answer 58

managers buy shares

Question 59

what is private equity buyouts?

Answer 59

a private investment company aggressively buys a controlling share in a business. They then sell off parts/all of the business and then sell the rest off for profit.

Question 60

what are 3 reasons for mergers?

Answer 60

quick way to expand synergies(working close with a business already) defensive reasons(compete better in the market)