3.1.1 Corporate objective 👩✈️ Flashcards
What is the mission statement?
A qualitative statement of an organisation aims 
What are corporate objectives ?
Relate to the business as a whole - set up by the senior management of business
What are Department objectives?
Go into more detail of the specifics as to how corporate aims met
What are the three uses of a mission statement ?
Focus 🧘♀️ - helps involve all employees - in the businesss
Profitability - help motivate employees - become more efficient
Identity - help creates this in a competitive environment
What is the hierarchy of business objectives ?
Aim
Mission
Cooperate objectives
Functional obj
Individual Targets
What are the 3 critical appraisals of mission statements ?
Purpose - MS sets the overall aim - long term objectives of business
Intended audience - MS written for stakeholders of business
Relation of cooperate Strategy of business -
Allows the flow of MS - and outline business obj
What are the 3 uses of a mission statement ?
Track progress - heading in the right direction in relation to corporate aim
Public relations - informs stakeholders of the business aims and what it plans to achieve
Strategic planning - MS can outline what business wants to do - sets good starting - can achieve corporate aims
What are the 7 limitations to Mission Statements ?
Not always supported by business actions - MS less beneficial
Too vague - don’t know what aims are set
Viewed as a public relation stunt - viewed cynical - only to enchance image and not as a useful tool
Can be unrealistic got over optimistic
Can become obsolete If the business develops but the mission statement is the same
And conflict if not properly written
Can waste management and resources
What are the stakeholders perspectives on mission statement?
Owners - allows them to communicate the aims of the business towards the target market -
managers- look for objectives in mission statement
Employees - individual targets enhanced focus and motivation
Pressure groups - to see the intent of the business and ensure that their needs are being met and align with the business - Clear and precise
Customers- need to align specific needs
Competitors - need to see a mission statement - for their identity allows them to differentiate from a missing statement or make it better
What is Ansoff’s Matrix ?
 is a tool for businesses with a growth objective
What is Ansofts matrix used to identify ?
appropriate corporate strategy
identify the level of risk associated with the chosen strategy
What does Ansoffs Matrix look like?
. market
existing New
Market penetration. Marketdevelopment
Existing Product development - mod risk
Product
new  Diversification (high risk ) 
What is market penetration?
Least riskyTo achieve growth
Will you increase sells in the market for an existing market will penetrate it more deeply - sell more to the same customer
Regular use
Loyalty
What is a product or service development?
New products and services developed for the existing market
Such as research and development to sell new products to existing customers
Designing
relaunching heritage products new versions
What is market development ?risk?
Moderate risk - existing products or services sold to New markets
-Finding and Exploiting new marketing opportunities existing products
What is diversification? risk ?
New products sold into New markets  - most risky - Entirely new target market- We develop products
What are the four uses of Ansoffs Matrix? What can we consider?
Helps identify potential markets for future options of expansion
And potential marketing strategies that - may associate costs benefits and risks -SWOT Analysis
Identified all the current products and services- Boston matrix - Product portfolio- see if you can get that first mover advantage in new markets
Can consider future options of expansion
You can use the investment appraisal technique to look 👀 at the capital expenditure of each project - risk
What are the four limitations of Ansoff’s matrix
Only shows part of the picture
Oversimplifies the market
Large MNCs maybe thousands of suboptions and strategies - limits
Should also conduct SWOT and PESTLE- Get a better idea of the whole picture
what is SWOT analysis ?
An Analytical tool Analysing A business Its resources and it’s environment
What is SWOT commonly used for?
Seeing the strengths and weaknesses - Internal
opportunities and threats - external
What is internal within swot analysis? What does this mean?
Strength and weaknesses
In control of the business
and relate to present day situation
what is external in SWOT analysis what does it mean?
Relate the changes in the ?
Are external
Relate to changes in the environment which impact the business
What are strengths in swot analysis?
What do they help build up?
What do they need to be?
Source of competitive advantage
Help build up a competitive advantage
Strengths need to be protected
Give some examples of strength within SWOT analysis 
High market share
high-quality
leadership and management skills financial resources
