1.3 Organizational Objectives

Question 1

What is a ‘mission statement’?

Answer 1

The mission statement is a declaration of an organization’s “reason for being”.

Question 2

What is a ‘vision statement’?

Answer 2

A vision statement is a declaration of a company’s goals for the midterm or long-term future. (What the company wants to achieve)

Question 3

What does ‘SMART’ stand for?

Answer 3

Specific
Measurable
Achievable
Relevant
Time-bound

Question 4

What is the hierarchy of objectives?

Answer 4

1) Day to day aims
2) Department or function objectives
3) Tactical objectives
4) Mission statement
5) Strategic objectives

Question 5

Why are tactical objectives set?

Answer 5

Tactical objectives are set in order to achieve strategic objectives. They are tactical because they are predicted and are more likely to be achieved.

Question 6

What is a ‘SWOT’ analysis?

Answer 6

“A technique which critically assesses strengths, weaknesses, threats and opportunities in a given situation. It clarifies problems and issues and enables decisions but it does not make them. “

Question 7

What does ‘SWOT’ stand for?

Answer 7

Strengths
Weaknesses
Opportunities
Threats

Question 8

What is CSR?

Answer 8

Corporate Social Responsibility
- The idea that a company should play a positive role in the community and consider the environmental and social impacts of business decisions.

Question 9

What are some examples of CSR?

Answer 9

• 0 tolerance for child labour
• Sustainable resources
• Pay equity
• Charitable contributions

Question 10

What is ‘Ansoff’s Matrix’?

Answer 10

Ansoff Matrix is a marketing tool used for growth. It shows options depending on the market and products.

Question 11

What is ‘Ansoff’s Matrix’ used for?

Answer 11

Ansoff’s Matrix helps businesses identify competitive strategies to with it’s market position and environment. It also identifies growth strategies and is generally used as a marketing tool to identify marketing strategies.

Question 12

How does ‘Ansoff’s Matrix’ look like?

Answer 12

Square shaped 2x2

Question 13

What is ‘Market Penetration’?

Answer 13

A strategy to increase sales of an existing product in an existing market. (eg. Kellogs promoting their cornflakes as an anytime meal)

Question 14

What is ‘Market Development’?

Answer 14

Involves selling existing products to new customers (eg. a facial product/ cream designed to appeal to youngers consumers)

Question 15

What is ‘Product Development’?

Answer 15

Developing a new product to existing consumers (introducing a new car model)

Question 16

What is ‘Diversification’?

Answer 16

Developing a new product to be sold to new consumers (eg. Mars launching it’s ice cream range)