1.3 Organisational objectives

Question 1

Aims

Answer 1

long-term goals of a business, often expressed in the firm’s mission statement
general statement of a firm’s purpose or intentions and tend to be qualitative in nature

Question 2

Ansoff matrix

Answer 2

an analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in either new or existing markets

Question 3

Corporate social responsibility (CSR)

Answer 3

the conscientious consideration of ethical and environmental practices related to business activity
a business that adopts CSR acts morally toward its various stakeholder groups and the wellbeing of society as a whole

Question 4

Ethical code of practice

Answer 4

the documented beliefs and philosophies of an organisation

Question 5

Ethics

Answer 5

the moral principles that guide decision-making and strategy

morals are concerned with what is considered to be right or wrong, from society’s point of view

Question 6

Mission statement

Answer 6

refers to the declaration of an organisation’s overall purpose
it forms the foundation for setting the objectives of a business

Question 7

Objectives

Answer 7

relatively short term targets of an organisation

they are often expressed as SMART objectives

Question 8

Strategies

Answer 8

plans of action that businesses use to achieve their targets, i.e. the long-term plans of the whole organisation

Question 9

SWOT analysis

Answer 9

an analytical tool used to assess the internal strengths and weaknesses and the external opportunities and threats of a business decision, issue or problem
+ reduce risks
+ quite simple and quick
- rather simplistic and not too detailed

Question 10

Vision statement

Answer 10

an organisation’s long-term aspirations, i.e. where it ultimately wants to be

Question 11

Internal factors for changing objectives

Answer 11

corporate culture

finance

Question 12

External factors for changing objectives

Answer 12

state of economy

pressure groups

Question 13

Morals

Answer 13

What is considered to be right or wrong from society’s pov

Question 14

Examples of ethical objectives

Answer 14

reduce pollution

recycling

Question 15

Examples of unethical behaviour

Answer 15

environmental damage

financial dishonesty

Question 16

Advantages of ethical behaviour

Answer 16

improved corporate image

increased customer loyalty

Question 17

Limitations of ethical behaviour

Answer 17

lower profit

compliance costs –> being socially responsible are potentially very high

Question 18

Tactics

Answer 18

short-term methods used to achieve an organisation’s tactical objectives

Question 19

3 attitudes towards the role of businesses

Answer 19

self interest - in order to gain profit, becomes more efficient –> helping the society indirectly

altruistic attitude - humanitarian and unselfish behaviour

strategic attitude - argues that businesses ought to be socially responsible only if such actions help them to become more profitable

Question 20

Strategies

Answer 20

plans of action to achieve strategic objectives of an organisation