1.3 Flashcards
what is a mission statement?
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.
what is a vision statement?
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.
what are some key differences between a mission and a vision statement?
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.
what is the AIM of a business?
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.
what is an objective of a business?
clearly defined and measurable targets of a business, used to achieve its aims The objectives are summarized in the Mission statement.
what are the three types of objectives a business has?
strategic
tactical
operational
what is a strategic objective?
medium to long term objectives to guide the company to achieve its aims
what is a tactical objective?
medium to long term objectives set by managers to achieve strategic objectives
what is a operational objective?
day to day objectives set my manager and/or workers to reach tactical objectives
when a business has its objectives, what is used to describe the relationship between the business goals?
a hierarchy of objectives.
what is the key feature distinguishing an aim and on objective?
Objectives are measurable and can be translated into something concrete.
Aims, however, are more “vague” but also motivating.
the best business objectives are SMART, what five components make up SMART?
spesific
mesurable
achievable
relevant
time specific
what is a business strategy?
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?
what is a business tactic?
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.
what are the two reasons a business has to change their objectives?
internal and external factors.
what is meant by internal factors?
those within the control of the organization. When conditions change within the business.
what is mean by external factors?
those beyond the control of the organization. What happens outside the business that affects its operations or performance
who might be an internal factor that effects the objectives of a business? give four examples.
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)
what are some external factors that could effect a business objectives? STEEPLE
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.
what is Corporate social responsibility referring to?
It is about an organization’s moral obligations to its stakeholders, the community, society as a whole and the environment.
what are ethics?
Ethicsare the moral principles and values that underpin human behaviour.
what are morals?
Morals are concerned with what is ‘right’ or ‘wrong’.
what are business ethics?
Businessethicsare the moral principles that reinforce business behaviour.
why do business create ethical objectives?
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
