3.7.1 Mission, corporate objectives and strategy

Question 1

External influences on a business corporate objectives and decisions

Answer 1

-𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 𝐟𝐨𝐫 𝐬𝐡𝐨𝐫𝐭 𝐭𝐞𝐫𝐦𝐢𝐬𝐦-objective may be making money if pressure from stakeholders -could sell of parts of the business.
-𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐢𝐧 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐩𝐨𝐥𝐢𝐜𝐲- e.g interest rises go up>business may delay expansion plans. OR economic growth> people have more purchasing power>better time to expand
-𝐃𝐞𝐦𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐚𝐥 𝐜𝐡𝐚𝐧𝐠𝐞𝐬> business may cater their product or service to fit those who may be most profitable.

Question 2

Influences on the mission of a business

Answer 2

Influences on a mission may include purpose, values, standards and behaviour, and strategy.

Question 3

Define corporate objective

Answer 3

A corporate objective is one that concerns the business as a whole.

Question 4

What are some purposes to a corporate objective?

Answer 4

-Helps measure business performance as a whole
-Provide strategic focus
-Inform decision making (which involves strategic choice)
-set the scene for more functional objectives.

Question 5

What are some key areas corporate objectives may concern? hint- MIPPMEP

Answer 5

Market
Innovation
Productivity
Physical and financial resources
Profitability
Management
Employees
Public responsibility

Question 6

-Market- as an area for corporate objectives may involve

Answer 6

Makret share, customer satisfaction and product range

Question 7

-Profitability- as an area for corporate objectives may involve

Answer 7

-Level of profits,
-rate of return on investment.

Question 8

-Public responsibility- as an area for corporate objectives may involve

Answer 8

Compliance with laws
Social and ethical behaviors

Question 9

Functional objectives are?

Answer 9

Set for each business function so that the corporate objectives for the firm are met

Question 10

Functional objective VS corporate objective?

Answer 10

Functional will relate to a specific part of the business e.g marketing,
Corporate is more like an overall objective (increase profits)

Question 11

Examples of functional objectives that help corporate objectives

Answer 11

-corp objective> increase sales
functional objective to do this> launch new products (marketing)
-Corp objective-Reduce business costs
Functional objective to do this- Increase factory productivity by 10% (operations)
-Corp objective- Improve customer satisfaction
Functional objective to do this- Train for better customer service (people)

Question 12

Name some INTERNAL influences on corporate objectives

Answer 12

-Organisational structure- flat?tall? who is making decisions? anyone or just those senior?

Question 13

Long term influences on objectives

Question 14

Strategy is

Answer 14

The medium to long term plan to allow the business to achieve its objectives

Question 15

Tactics are

Answer 15

The means in which a strategy is carried out. They tend to be decided by the functional heads of apartment

Question 16

Disadvantages to a SWOT analysis

Answer 16

Doesn’t provide any solution- only states the problems.
Can become outdated easily e.g through changes in external environment.

Question 17

Impact of strategic decision making on functional decision making