1.5.3 Business Objectives Flashcards

1
Q

Mission statement

A

A qualitative statement of the businesses aims.

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2
Q

Features of a mission statement

A
  • The overriding goal of the business.
  • The reason for its existence.
  • A vision for the future.
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3
Q

What makes a good mission statement?

A
  • Excites, inspires, motivates and guides.
  • Differentiates the business from it competitors.
  • Defines the market or business in which the firm wants to operate.
  • Relevant to objectives and therefore enables progress towards them to be measured.
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4
Q

Aim

A

A long term plan from which objectives are derived.

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5
Q

Objectives

A

Targets which the business adopts in order to achieve its overall corporate aims.

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6
Q

Examples of objectives

A
  • Survival
  • Profit maximisation
  • Sale maximisation
  • Customer satisfaction
  • Market share
  • Employee welfare
  • Cost efficiency
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7
Q

Purpose of objectives

A
  • Motivate employees.
  • A measure of performance.
  • Provides a clear focus for decision making.
  • Provides a sense of unity.
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8
Q

Corporate objectives

A

The overall business targets.

The corporate objectives translate down to each department or function.
Marketing, Human resources, Finance, Operations.

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9
Q

Factors influencing whether or not objectives are fulfilled?

A
  • Competition
  • State of the economy
  • Age of the business
  • Legislation
  • Social attitudes – consumers
  • Market conditions
  • Political factors
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