3.7.1

Question 1

what is the mission and corporate objectives of a business

Answer 1

outline what the business aims to achieve

Question 2

for this reason the mission and corporate objectives guide

Answer 2

the actions and strategy of a business and act as the measures by which we can assess the overall success of the business

Question 3

The mission of a business will be influenced by a range of factors, including:

Answer 3

• the values of the founder/s
• the industry the business is in
• the views of society
• the size of the business and type of ownership
• the culture of the business.

Question 4

a mission statement sets out

Answer 4

the purpose of a business existing

Question 5

The mission relates to all stakeholders and typically focuses on what

Answer 5

values of the business
scope of the business (the areas in which it operates)
long-term aim of the business
to produce products that improve people’s lives and delight our customers
importance of different stakeholder groups
impact the business intends to have on society

Question 6

what are the corporate objectives of a business

Answer 6

quantify the mission of a business and set specific and measurable targets for the whole organisation.

Question 7

focus of corporate objectives

Answer 7

market standing
innovation
sustainability
profitability
growth
social responsibility
shareholder value

Question 8

external factors affecting corporate objectives

Answer 8

economic conditions
social change
technological change
global prices
actions of competitors

Question 9

internal factors affecting corporate objectives

Answer 9

poor performance
new leadership
business ownership
business culture
business growth

Question 10

what is short-termism

Answer 10

pressure on achieving short-term gains over long-term success. Sometimes short-termism and the pressure for instant success can influence corporate objectives and decision making as much as any other internal or external factor

Question 11

what is a strategy

Answer 11

A strategy is a long-term plan (A) or approach that a business will take to achieve its objectives (B).

Question 12

strategies involve

Answer 12

a major commitment to resources

Question 13

clear strategies guide

Answer 13

tactical decisions. A business may have a strategy to become a market leader by having the widest range of innovative products on the market.

Question 14

However, a tactical decision to support this strategy might be to

Answer 14

divert an extra £5 million into research and development and headhunt some of the most innovative designers in the industry.

Question 15

what are tactics

Answer 15

Tactics are the day-to-day decisions taken by middle managers.

Question 16

tactics are what

Answer 16

frequent and involve fewer resources but are taken to achieve the strategic direction of the business.

Question 17

aims

Answer 17

overall goal or purpose of the organisation

Question 18

mission statement

Answer 18

A statement that communicates the aim and purpose of the business to the stakeholders of the business.

Question 19

functional objectives guide

Answer 19

tactical decisions made by managers on a day-to-day basis.

Question 20

tactics support the

Answer 20

business strategy

Question 21

what is SWOT analysis

Answer 21

a strategic tool that a business can use to analyse its current position and the external factors that might affect it.

Question 22

benefits of SWOT analysis

Answer 22

assists strategic thinking in a structural way
low-cost, simple approach
can be combined with other decision-making models, such as PEST

Question 23

limitations of SWOT analysis

Answer 23

subjective - depends on opinions of managers
does not offer clear solutions classification may depend on perspective