1.3

Question 1

vision statement

Answer 1

outlines an organisations aspirations
- what the business wants to become
- long term

Question 2

Mission statement

Answer 2

simple declaration of the underlying purpose of an organisations existence and its core values.
- What is our business
- short term

Question 3

purpose and characteristics of mission statements

Answer 3

• defines the organisation
• emphasises core value
• distinguishes the organisation from others in the market
• serves to evaluate current business activities

Question 4

objectives

Answer 4

goals or targets an organisation wants to achieve
important
- to measure and control performance
- To motivate
- to direct

Question 5

most common objectives

Answer 5

i) growth
ii)profit
iii)Protecting shareholder value
iiii) Ethical

Question 6

pros and cons of ethical objectives

Answer 6

pros
- improved corporate image
- increased customer lyalty
- Cost cutting
- Improved staff morale and motivation

cons
- compliance costs
- lower profit
- stakeholder conflict

Question 7

Strategic and Tactical objectives

Answer 7

medium to long-term plans of action to achieve the strategic objectives of an organisation.

tactics –> short term goals set for the next 12 months or sooner. must include Survival, Sales revenue maximisation.

Strategic objectives –> longer term goals
- Profit maximisation
- improving market standing
- improving image and reputation

Question 8

Corporate social responsibility (CSR)

Answer 8

Conscientous consideration of ethical and environmental practice related to business activity. relies on society’s changing perception of what is considered moral