1.4

Question 1

Mission Statement

Answer 1

A brief statement of the businesses’ core aims , phrased in a way to motivate employees and stimulate interest from outside groups

Question 2

Advantages of Mission Statement (3)

Answer 2

1. Quickly inform outside groups about company
2. Motivate employees - have goal
3. Act as benchmark - measuring performance

Question 3

Disadvantages of Mission Statement (2)

Answer 3

1. Too vague
2. May be false

Question 4

Objectives

Answer 4

A stated measurable target that a business tries to achieve

Question 5

Strategy

Answer 5

Long term plan of action designed for a business to achieve a particular objective

Question 6

Tactics

Answer 6

Short term action as a part of an overall strategy

Question 7

Stages in business decision making (5)

Answer 7

1. Setting objectives - realistic targets
2. Gathering info - analyze situation around
3. Selecting strategy - analysis
4. Implementing strategy - use various tactics
5. Reviewing - check if target is achived

Question 8

How Objectives might change overtime? Internal reasons (3)

Answer 8

1. Stage of business - survival -> growth
2. Financial resources
3. Change of ownership - different veiw

Question 9

How Objectives might change overtime? External reasons (3)

Answer 9

1. Government Laws - consumer and labor protection laws
2. High Competition - Profit -> Survival
3. Technology - Profit -> growth (training)

Question 10

How business communicates objectives (5)

Answer 10

1. Adress by CEO
2. Team meetings
3. Training days
4. Digital platforms
5. Internal advertisement