1.3: Business Objectives Flashcards
What is a mission statement?
A motivating declaration of an organization’s core purposes and focus.
What is a vision statement?
A long term goal in what an organization wants to achieve in the future.
What are the advantages of a mission and vision statement?
• Quickly informs the general public the aim and vision
• Helps motivate employees
• Establishes to stakeholders “what is the business about”
What are the disadvantages of mission and vision statements?
• Sometimes too vague and generic
• Statements are very long term-may not over materialize
• May be ignored/not taken seriously by employees
What are the three common business objectives?
• Strategic objectives
• Tactical objectives
• Operational objectives
What is the definition of SMART?
Specific
Measurable
Achievable
Realistic
Time
Strategic objectives are set by?
Senior Managers or Board of Directors
Tactical objectives are set by?
Middle managers
Operational objectives are set by?
Lower management or team leaders
What are possible internal changes within a business?
• Change of leadership
• Product performance
• Finance sources are limited
What does SWOT analysis stand for?
Strength
Weaknesses
Opportunities
Threats
What is Ansoff’s Growth Matrix
A tool which helps businesses decide how to grow by focusing on new or existing products and markets.
What are the four pillars of Ansoff’s growth matrix?
Market development
Market penetration
Product development
Diversification
Explain the four pillars of Ansoff’s growth matrix
•Market development: entering a new market segment with existing products.
•Market Penetration: focuses on the sales of an existing product within existing market.
•Product development: a new or improved product is sold within an existing market.
•Diversification: a new product is sold within a new market.
What does STEEPLE stand for?
Social
Technological
Economic
Ethical
Political
Legal
Environmental
