1.3

Question 1

what is a mission statement?

Answer 1

is a short sentence or paragraph used by a company to explain, in simple and concise terms, its purposes for being.
It focuses on the aims to get the objective set by the company and what the company wants to do right now.

Question 2

what is a vision statement?

Answer 2

it is aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future.
It is intended to serve as a clear guide for choosing current and future courses of action.

Question 3

what are some key differences between a mission and a vision statement?

Answer 3

vision is long term, mission is in the present
vision should remain the intact, mission can change and adapt.
vision is for the cutters understanding while mission is more internalised.

Question 4

what is the AIM of a business?

Answer 4

a general statement of what a business wants to achieve in the future, long term goals. The vision statement is a summary of the aims.

Question 5

what is an objective of a business?

Answer 5

clearly defined and measurable targets of a business, used to achieve its aims The objectives are summarized in the Mission statement.

Question 6

what are the three types of objectives a business has?

Answer 6

strategic
tactical
operational

Question 7

what is a strategic objective?

Answer 7

medium to long term objectives to guide the company to achieve its aims

Question 8

what is a tactical objective?

Answer 8

medium to long term objectives set by managers to achieve strategic objectives

Question 9

what is a operational objective?

Answer 9

day to day objectives set my manager and/or workers to reach tactical objectives

Question 10

when a business has its objectives, what is used to describe the relationship between the business goals?

Answer 10

a hierarchy of objectives.

Question 11

what is the key feature distinguishing an aim and on objective?

Answer 11

Objectives are measurable and can be translated into something concrete.
Aims, however, are more “vague” but also motivating.

Question 12

the best business objectives are SMART, what five components make up SMART?

Answer 12

spesific
mesurable
achievable
relevant
time specific

Question 13

what is a business strategy?

Answer 13

A business STRATEGY is the plan of action to achieve the strategic objectives of an organization(medium to long term). They are analysed carefully to answer questions like: Who? When? What? Where? When? and Why?

Question 14

what is a business tactic?

Answer 14

Business TACTICS are short-term methods used to achieve an organization’s tactical objectives towards the strategies of the business. They focus on how to achieve the strategy.

Question 15

what are the two reasons a business has to change their objectives?

Answer 15

internal and external factors.

Question 16

what is meant by internal factors?

Answer 16

those within the control of the organization. When conditions change within the business.

Question 17

what is mean by external factors?

Answer 17

those beyond the control of the organization. What happens outside the business that affects its operations or performance

Question 18

who might be an internal factor that effects the objectives of a business? give four examples.

Answer 18

Leadership – the new Leader may come with new objectives and the company should adapt to it.

HR – HR has a huge task within the business and needs to adapt to objectives’ alteration. Examples, are changes in employer’s status or salaries due to actions taken by the Union.

Organization – this change of objectives can be due to internal pressures, change in organization or M&A’s.

Finance – the amount of money available will determine the objectives of the business (i.e. if the business wants to expand, more money is needed)

Question 19

what are some external factors that could effect a business objectives? STEEPLE

Answer 19

Social – changes in society, demographically or culturally. The organization need to adapt to these change (i.e. healthy eating products)

Technological – this factor is constantly changing (i.e. Kodak, Blackberry, Nokia). Technology also allows more control over business malpractices (i.e. child labour)

Economic – changes in economics conditions , such as the Financial Crisis, will affect organizations (i.e. increase in interest rates lowered Investment, or mortgage market bubble burst)

Ethical – this is a big area of change, examples such as sustainable practices, diversity hiring, product safety are completely different or new compared to 50 years ago. It is crucial for organizations to adapt to Ethical changes specially since Stakeholders will put pressure on them.

Political – changes in Governments or any political instability will have and effect in Organizations, for example Multinational organizations that want to invest (i.e. Brexit, Donald Trump)

Legal – when some aspects in society lead to changes in the Legal system some organizations related to the change will have to change their objectives (i.e. laws in gun possession, tax increase for alcohol, smoke banning, etc.)

Ecological – Environmental awareness is growing very fast nowadays and organizations need to adapt to this change. Examples such as “clean technologies”, hybrid cars, solar panels, etc. need the organizations to respond and take this factor into account.

Question 20

what is Corporate social responsibility referring to?

Answer 20

It is about an organization’s moral obligations to its stakeholders, the community, society as a whole and the environment.

Question 21

what are ethics?

Answer 21

Ethicsare the moral principles and values that underpin human behaviour.

Question 22

what are morals?

Answer 22

Morals are concerned with what is ‘right’ or ‘wrong’.

Question 23

what are business ethics?

Answer 23

Businessethicsare the moral principles that reinforce business behaviour.

Question 24

why do business create ethical objectives?

Answer 24

Creating a positive image
Building up customer loyalty
Create a positive work environment
Reducing the risk of legal “redress”(money paid when harm or loss is done)
Increasing profits
Satisfying customer’s higher expectations on ethical behaviour

Question 25

what is the impact of implementing ethical objectives?

Answer 25

The business itself – costs might increase, reluctance to change
Competitors – they will need to adapt to the change
Suppliers – they will need to supply according to the new requirements
Customers – they need to trust the business
The local community – improvement in relationship with the local community
Government - for political reasons, Government support ethical practices

Question 26

what is the difference between ethical objectives and CSR?

Answer 26

Ethical objectives is about managing the behaviour of individual employees and other stakeholders. CSR is focused on the behaviour of the organisation as a whole as opposed to the actions of individuals within it.

Question 27

what is a SWOT analysis?

Answer 27

A SWOT analysis is a study undertaken by an organization to identify its internal Strengths and Weaknesses, as well as its external Opportunities and Threats

Question 28

what are some advantages of using a SWOT analysis?

Answer 28

Knowing one’s strengths helps a person apply focus on strong points that can accentuate a business.

Knowing weaknesses allows knowledge into what needs to be improved on for bettering efficiency and the business.

Using opportunities wisely leads to ways to better a business if they’re put to proper use.

Knowing one’s treats is important because it keeps people one step ahead and offers time to think of ways to lessen the impact of the threat on a business

Question 29

what are some disadvantages of using SWOT?

Answer 29

Focusing too much on strengths can lead to ignorance ofone’s flaws and can eventually lead to the weakening of one’s business.

Focusing too much on weaknesses can lead to the neglecting of strengths or cause a person to look down on their business. Be positive!

not all opportunity are a benefit for the business in the longterm run.

Question 30

in terms of SWOT matrix, what strategy does Strengths and oppertunitys create?

Answer 30

a growth strategy. combining the strengths of the business with market opportunities.

Question 31

in terms of SWOT matrix, what strategy does weakness and opportunity create?

Answer 31

Re-orientation strategies – when a business uses one or more weaknesses as an opportunity. They work in the long run, the organization needs to address the weakness first and then re-orient to the opportunity.

Question 32

in terms of the SWOT Matrix, what starry is born from strengths and threats?

Answer 32

Defusing strategies – focus on the strengths of the organization to eliminate or reduce threats. It’s a medium to short term strategy (i.e. Steve Jobs death in 2012)

Question 33

in terms of the SWOT matrix, what is born from weakness and threats?

Answer 33

Defensive strategies – when an organization is at its most vulnerable. They need to be quick and “negative” short term strategies but necessary to improve the organization (i.e. redundancies, reallocation)

Question 34

what is the ansoff matrix?

Answer 34

TheAnsoff Matrixis a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth.

Question 35

what does an old market and and old product create?

Answer 35

a market penetration

Question 36

what does an old product and a new market create?

Answer 36

a market development

Question 37

what is created from a new product but an old market?

Answer 37

a product development

Question 38

what is created from a new market and a new product?

Answer 38

a market diversification.