1.5.3 Business Objectives Flashcards
1
Q
Mission statement
A
A qualitative statement of the businesses aims.
2
Q
Features of a mission statement
A
- The overriding goal of the business.
- The reason for its existence.
- A vision for the future.
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.
4
Q
Aim
A
A long term plan from which objectives are derived.
5
Q
Objectives
A
Targets which the business adopts in order to achieve its overall corporate aims.
6
Q
Examples of objectives
A
- Survival
- Profit maximisation
- Sale maximisation
- Customer satisfaction
- Market share
- Employee welfare
- Cost efficiency
7
Q
Purpose of objectives
A
- Motivate employees.
- A measure of performance.
- Provides a clear focus for decision making.
- Provides a sense of unity.
8
Q
Corporate objectives
A
The overall business targets.
The corporate objectives translate down to each department or function.
Marketing, Human resources, Finance, Operations.
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