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
What are weaknesses?
What should management do? 
Source of a competitive disadvantage
Seek ways to elements or reduce weaknesses
What is weakness in SWOT analysis ?
An area for improvement
What are some examples of the potential business weaknesses?
Low market share
Out of date technology
Poor quality
lack of innovation
demotivating staff
What are opportunities?
Creates Positive potential for business to achieve objectives
What are potential Business opportunities?
new demand
market growth 
Social or lifestyle changes 
Diversification opportunities 
What a threats ?
external developments that may hinder the business from achieving an objective
What a potential business threats ?
Democratic change
new regulations
economic downturn
consumer changes in tastes
What is the value of using SWOT analysis?
What is it supporting ?
it’s an analytical technique used to support decisions
what do we match with SWOT analysis?
What do we convert? eg
Strengths with opportunities
Weaknesses into strengths
Examples
poor skills? - invest in training and most effective recruitment
poor quality ? - investing quality assurance
What are the advantages of SWOT? 4 things
Easy to understand
logical structure
focuses on strategic issues 
encourages analysis on external environment
What are the disadvantages of SWOT?
Too often lacks focus on too many other elements
Can quickly get out of date
Is it really an independent assessment? 
Who made the classification of company cultures?
What are they represented by?
Charles Handy 4 main company cultures
power culture - spider in the middle of the web 🕸️🕷️
Strong owner at the heart of a business 👩💼
role culture - four pillar house 🏠 bureaucracy
red tape system rigid organisation
task culture -represented by the matrix 🧮
when people from different manager or groups come together to work on a project
person culture
Person culture- 🧫
People are equal in an organisation and are all autonomous skilled individuals
What kind of figure is in a power culture?
what is there a few of and an amongst employees?
🕸️🕷️
Central figure will make decisions funeral
few rules and procedures
Competitiveness around employees to attain power
How decisions made within a role culture?
Where does the power come from?
Well established rules and procedures
Power comes from job title and hierarchy
What does role culture involve and why?
Paperwork due to very bureaucratic culture
What is the positives of having task culture?
What to do they focus on ?
Where does power come from?
Very dynamic agile business
Projects that need to be completed
Power in a task those with expertise have the power to do it
involves teamwork
What do groups of similar skilled people share in people culture?
Knowledge
worked by client by client basis rather than task culture
How is corporate culture formed?
wearing uniforms
company songs,
rituals
language
What are the seven factors that influences what your corporate culture is?
Roles of the owner based around Ethos or influence
Nature of the business and what it sells
Whether the degree or product sold have has changed over time 🕰️
The business environment when it staffed - war time?
Recruitment of key staff
working hours
attitude to customer service
What is risk aversion culture?
Business is likely to reject decisions because of the risks
For example - diversify a product
What is toxic culture?
Business attitudes of staff can damage the firms reputation and lead to unethical behaviour
Why do subcultures exist in large organisations?
Little departments may gain their own identity
Why are strong cultures hard to change?
They consist of interlocking
Set of goals
Roles
and processes
Communication practices
Value and attitudes
Assumptions
