1.3 Business Aims and Objectives Flashcards
Mission statement
Declaration of the firm’s overall purpose - forms the foundation for setting objectives.
Possible Aims
Market Share, Product Innovation, Maximise Profits, Maximise shareholder value, Maximise Sales Revenue, Maximise Growth, Maximise Employee Benefits, Benefit Local Community, Benefit Environment, Efficiency, Survival
Factors that change objectives
Internal: Corporate culture, Type & size of organisation, Private vs Public sector organisations, Age of business, Finance, Risk profile, Crisis management,
External: State of economy, Government constraints, Presence and power of pressure groups, New technologies, Ethical concerns, Cost changes
Why set ethical objectives?
Benefits: Improved Corporate Image, Improved customer loyalty, Improved staff motivation, Improved staff morale, Benefits to community/customers
Limitations: Compliance costs, Lower profits, Stakeholder conflict, Drive for profits encourage innovation
Unethical Business Behaviour
Financial Dishonesty, Environmental Neglect, Exploitation of the workforce, Exploitation of suppliers, Exploitation of customers
SWOT Analysis
Tool for evaluating an organisation and its environment. SWOT analysis is the first stage of planning and helps marketers to focus on key issues.
Internal: Strengths, Weaknesses
External: Opportunities Threats
Why is SWOT Analysis useful
Competitor analysis, Assessing opportunities, Risk Assessment, Reviewing corporate strategy, Strategic planning
STEEPLE =
Social, Technological, Ethical, Environmental, Political, Legal, Economic
Market Penetration
Existing Markets + Products:
Market Development
Existing Product + New Markets
Product Development
Existing Markets + New Products
Diversification
New Markets + Products
Vision statement
A vision statement is an inspirational statement of an idealistic future of a company.
Vision statement somewhat guides the direction of the organisations efforts
