3.7.1 mission, corporate objectives and strategy

Question 1

what is a mission statement?

Answer 1

declares the organisation’s purpose, aims, identities, policies and values.

Question 2

what are corporate objectives?

Answer 2

sets out what a business needs to do to achieve its aims and purposes

Question 3

what are strategic decisions?

Answer 3

judgements made by senior managers that are long-term, involve a major commitment of resources and are difficult to reverse

Question 4

what is a strategy?

Answer 4

a medium to long term plan detailing how the company intends to achieve its corporate objectives

Question 5

what are tactics?

Answer 5

meeting short term targets, require fewer resources to implement and may be easy to reverse

Question 6

what is a SWOT analysis?

Answer 6

a management technique used to identify strengths, weaknesses, opportunities and threats to which it will be exposed.

Question 7

external influences on corporate objectives and decisions:

Answer 7

PESTLE
competitors
society’s views

Question 8

internal influences on corporate objectives and decisions:

Answer 8

business ownership
short-termism
business culture
leadership

Question 9

examples of business strengths:

Answer 9

strong brand name
highly motivated employees
cutting edge R&D

Question 10

examples of business weaknesses:

Answer 10

financial constraints
bad publicity
reputation for low quality

Question 11

examples of business opportunities:

Answer 11

market segment is growing
competitor has closed down

Question 12

examples of business threats:

Answer 12

changes in legislation
competitor actions
economic conditions