3.1 business objectives and strategy

Question 1

what is a business aim?

Answer 1

shows what a business is looking to achieve in the long term, they serve as a guide for a business’ overall strategy.

Question 2

what is a mission statement?

Answer 2

an expression of a business’ overall aim as well as its core values and context, they provide direction and a common purpose for employees.

Question 3

what is a corporate objective?

Answer 3

these are specific goals set by senior management for the business to achieve over time.

Question 4

what are functional objectives?

Answer 4

the day to day goals of departments within the business, derived from corporate objectives.

Question 5

what should corporate and functional objectives always be?

Answer 5

SMART
Specific
Measurable
Agreed
Realistic
Time-bound

Question 6

what are some disadvantages of mission statements?

Answer 6

• they are sometimes criticised as being more of a public relations exercise
• large businesses may struggle to monitor all employees following the mission statement and objectives
  -mission statements could be too broad resulting in loss of moral and demotivated employees.

Question 7

what are some advantages of mission statements?

Answer 7

• It is a foundation for your strategy and a guiding tool for a multitude of activities
• If designed well, it will provide your organisation with a framework for making decisions throughout the organisation
• allows you to have consistency across your organisation
• should make people want to know more about your organisation
• great tools for recruitment in order to attract the right type of candidates to your organisation