1.3 Organisational objectives

Question 1

mission statement

Answer 1

statement of the businness`s core aim, phrased in a way to motivate employees ans stimulate interest by outside groups

Question 2

Vision statement

Answer 2

A statement of what the organisation would like to achieve in the long term

Question 3

Corporate aims

Answer 3

Longterm goals wich a business hopes to achieve

Question 4

Devisional/ Operational objectives

Answer 4

short or medium term goals or targets (usaually specific in nature) wich must be achieved for an organisation to attain its corporate aims

Question 5

The Hierarchy of objectives

Answer 5

1. Aim -> maximise shareholder value
2. Corporate objectives -> increase profits of all devions by 10%
3. Devisional objectives -> Within one region to increase market share
4. Departmental objectives -> Marketing, Finance
5. Individual targets -> e.g In marketing department : - increase sales by anverage 5% per client

Question 6

strategy

Answer 6

Long term plan for action for whole organisation

Question 7

Tactic

Answer 7

Short - term policy or decision aimed at resolving a particular problem or meeting a spicific part of the strategy

Question 8

Common corporate aims

Answer 8

Profit maximisation

Profit satisfaction: Making enough profit to keep owners happy but not to make as much as possibil. Often rhe objectiv of small business owner that want to live comfortly but not work very long hours

Growth: Grow sales or value output

Increasing market share

Survival

Maximising short term sales revenue: Benefit for staff when they have a bonus.

Maximising shareholder value: Aim to increase the share price and dividends to shareholders. Target might be achieved by profit maximasation

Question 9

ethics

Answer 9

Moral guidelines that determine decision making

Question 10

ethical code (code of conduct)

Answer 10

Document detailing a companys rules and guidelines on staff behavior

Question 11

Stakeholders

Answer 11

people or groups who can be affected by actions of otganisation

Question 12

Corporate social responsibility

Answer 12

This concept applies to those businesses that consider the interest of society by taking responsibility for the impact of their decision and activities , empoyees, customers, enviroment…

Question 13

Social audit

Answer 13

An independent report on the impact a business has on socierty

Question 14

Operational objectives should be SMART

Answer 14

S - specific
M - measurable
A - achievsble
R - realistic and relevant
T - time specific

Question 15

Factors determining corporate objectives

Answer 15

Corporate culture: code of behavior and attidudes that influences the decision making style of thr managers and employees -> Behavior with each other

Size and legal form of business

Public or private sector

Well established business or not

Question 16

SWOT analysis

Answer 16

S: strengh
W: weaknesses
-> internal

O: Opportunities
T: Threats
-> external

Question 17

Ansoffs matrix

Answer 17

Model used to show the degree of risk associated the four growth strategies: market penertration, market development, product development, diversification

Question 18

market penetration

Answer 18

Achieving higher market shares in existing products

Question 19

product development

Answer 19

The development and sale of new products or new development of existing products in existing markets

Question 20

market development

Answer 20

The strategy of selling existing products in new markets

Question 21

Diversification

Answer 21

The process of seeling different, unrelated goods or services in new markets