3.1 Business Objectives and Strategy Glossary

Question 1

Mission Statement

Answer 1

A brief statement, written by the business, describing its purpose and objectives, designed to encapsulate its present operations

Question 2

Corporate Aims

Answer 2

The long term, often qualitative, targets of a business.

Question 3

Corporate Objectives

Answer 3

The medium to long term targets of a business; tend to be quantifiable (SMART).

Question 4

Corporate Strategies

Answer 4

The plans and policies developed to meet a company’s objectives.

Question 5

Distinctive Capability

Answer 5

A form of competitive advantage that is sustainable because it cannot be easily replicated by a competitor.

Question 6

SWOT analysis

Answer 6

An analysis of the internal strengths and weaknesses of the company and the opportunities and threats presented by the external environment.

Question 7

Portfolio analysis

Answer 7

A method of categorising all the products and the services of a firm (its portfolio) to decide where each fits within the strategic plans.

Question 8

Stakeholder

Answer 8

Anyone with an interest in the actions of a business e.g. employees, investors, customers.

Question 9

Stakeholder Perspectives

Answer 9

The view that different stakeholders have regarding the objectives and the strategies of the organisation.