3.7.1 Mission, Corporate Objectives and Strategy. Flashcards
Define strategic positioning:
A company’s relative position within it’s industry.
Define Strategic Decision Making:
The process of charting a course based on long term goals and a longer term vision.
What is the reason for strategic decision making?
Clarifying a company’s big picture aims allows opportunities to align shorter term plans with your broader mission - giving operations clarity and consistency.
What are the factors to consider when making strategic decisions?
They impact of technology.
Influences on CSR, ethics and environment.
Impact on stakeholders and their reactions to SDM.
Importance of assessing Feasibility and risk.
Difficulties in forecasting the future.
What are things to consider when making SD?
What the business hopes to achieve.
How does the business strategy relate to the mission and corporate objectives?
What impact does the strategy have on functional areas?
SWOT analysis - what is its value?
What is a mission statement?
Overall goals of the business.
What would be considered when making a mission statement?
The value of the business.
The range of a firms activities.
The importance of different groups.
What is the difference between a mission and vision statement?
Mission statement is the companies goals, objective and their approach to these, a vision statement describes a businesses desired future position.
Define a corporate objective.
Medium to long term goals established to coordinate the business.
Define a strategic decision.
Judgements made by senior managers that are long term, involve major commitment of resources and are difficult to reverse.
What do corporate objectives do?
Coordinate the business by making mission statements quantifiable, providing guidance for objective setting junior managers to set them lower down the business and for the setting of functional objectives.
What are common features of corporate objectives?
Frequently quantified.
Have stated timescales.
In what type of objective would a corporate objective be difficult to quantify?
Those relating to social responsibility etc, making them difficult to measure.
What are the eight areas where corporate objectives could be set?
Market position.
Innovation.
Financial resources.
Physical resources.
Human Resources
Productivity.
Social resources.
Profits.
What are the external influences on corporate objectives and decisions?
Economy.
Global prices.
Technological change.
Migration.
