Mission Statement

Question 1

Whats a mission statement?

Answer 1

This gives a general idea of the reasons for the businesses existence and what its purpose is

Question 2

What is the hierarchy of objectives?

Answer 2

Aims
Mission statement
Corporate objectives
Functional objectives
Business unit/ individual targets

Question 3

what are aims?

Answer 3

Overall target and broader than objectives. Long term plan of the business. Eg survival, growth, breaking even

Question 4

What are corporate objectives?

Answer 4

Objectives of the business as a whole and cover a range of the key areas. Set at corporate level

Question 5

What are functional objectives?

Answer 5

Relate to specific function of a business such as Marketing, HR, operations and finance

Question 6

What are business units/ Individual targets?

Answer 6

Similar to functional objectives but are more focused on individuals

Question 7

What does SMART stand for?

Answer 7

Objectives need to be:
Specific
Measurable
Achievable
Realistic
Time - bound

Question 8

Whats a strategy?

Answer 8

A long term plan based on the business objectives

Question 9

Whats a tactic?

Answer 9

A short term response to opportunities and threats

Question 10

What does an effective mission statement look like?

Answer 10

Differentiates business from competitors
Defines market it wants to operate in
Relevant to al major stakeholders
Excites, inspires, motivates

Question 11

Why might a mission state to be criticised?

Answer 11

Too vague or general
Not supported by actions
Viewed as public relations exercise
It always wholeheartedly supported