1.3 Business Objectives Flashcards
What is a tactic objective?
Short-term goals that affect a section of the organization
What is a strategy objective?
Short-term goals that affect a section of the organization
What is a mission statement?
Declaration of the underlying purpose of an organization’s existence.
its core values. Medium to long-term.
What is a vision statement?
Outline of an organization’s aspirations in the distant future. Very long-term.
What is a business objective?
Objectives are the goals or targets an organization strives to achieve.
Why do we use business objectives?
- To measure and control
- To motivate
- To control
Examples of business objectives
- Growth
- Profit
- Protecting shareholder value
- Ethical objectives
What is the order of objectives in the pyramid?
Vision
Mission
Strategies
Tactics
Advantages of ethical business practices
- Improved corporate image
- Increased customer loyalty
- Improved staff morale and motivation
Disadvantages of ethical business practices
- Lower profits
- Compliance cost
- Stakeholder conflict
What is corporate social responsibility (CSR)?
The practices and policies undertaken by corporations to have a positive impact on society and the environment beyond their financial obligations.
What are examples of CSR policies
- Be conscious of impacts to the environment
- Be fair to employees
3 Provide accurate product labelling - Contribute to communities through charity work
What are internal factors?
The factors that are in within the control of the organization.
What are external factors?
The factors that are beyond the control of the organization.
Examples of internal factors include…
- Type and size of the organization
- Whether the company is private or public
- Risk Profile
Examples of external factors include…
- New technologies
- State of the economy
- Government constraints
What is a stakeholder?
A stakeholder is defined as any individual or group that has an interest in, or is affected by, the activities and decisions of a business.
What is an external stakeholder?
Any individual or group outside of an organization that has an interest in or is affected by the activities and decisions of that organization.
What is an internal stakeholder?
An individual or group within an organization that has a direct interest in its operations and performance.
Examples of external stakeholders..
- Government
- Suppliers
- Competition
- Customers
Examples of internal stakeholders….
- Employees
- Owners/Shareholders
- Managers
What is a shareholder?
A shareholder is an individual or institution that owns shares in a corporation.
What is an external shareholder?
An external shareholder refers to individuals or entities that own shares in a company but are not directly involved in its day-to-day operations.
What is an internal shareholder?
Internal shareholder refers to individuals or entities that own shares in a company and are also involved in its operations and management.
An example of an external shareholder would be….
an investor
An example of an internal shareholder would be…..
employees, managers, board of directors
In what ways does the government have a significant influence on business activity?
- Avoid unfair business practices
- Ensure that corporate tax is paid
- Ensure that health and safety is met
What is a stakeholder conflict?
A stakeholder conflict occurs in situations where people disagree with each other due to differences in their opinions or values, thus creating tension between different stakeholder groups of the organization.
Different causes of stakeholder conflict
Remuneration of the company’s directors
Fair distribution of dividends
What is dividends?
A portion of a company’s profits distributed to its shareholders as a reward for their investment.
What is stakeholder mapping?
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