1.3 Business Objectives

Question 1

Mission Statement

Answer 1

A statement that outlines the overall purpose of a business and what it is trying to accomplish

tend to be more specific and detailed - Who are we?

Question 2

vision statement

Answer 2

a statement that outlines the goals and dreams of the business in the future

broad and not necessarily realistic - who do we want to be?

Question 3

pros of having mission/vision statement

Answer 3

• gives direction and guides decision making and behavior
• reinforces brand image
• can motivate employees

Question 4

cons of having mission/vision statement

Answer 4

• can be too vague and general
• could be seen as just public relations
• time and cost involved in making them

Question 5

common business objectives

Answer 5

1. growth
2. profit
3. protecting shareholder value
4. ethical objectives

Question 6

strategic objectives

Answer 6

aims and goals of the busienss that are long-term

Question 7

tactical objectives

Answer 7

aims and goals of the business that are short-term and often only include parts of the business

Question 8

Corporate social responsibility (CSR)

Answer 8

operating a business in a way that takes accounts of all parts of society and multiple stakeholder groups

focuses not only on profit

Question 10

Triple Bottom Line (TBL)

Answer 10

Bottom line = Profit
TBL focuses on People, profit, planet
aka economic, social & environmental

Question 11

Pros of CSR

Answer 11

• enhanced brand image
• differentiation from competitors
• attracting and motivating EEs
• less bad publicity

Question 12

Cons of CSR

Answer 12

• increased costs
• lower profits in the short run
• increased publicity for unethical behavior
• consumers may see through it