3.7.1- Mission, corporate objectives, functional objectives and strategy Flashcards

3.7 Analysing the strategic position of a business

1
Q

What are missions?

A

A businesses overall purpose.

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2
Q

What are objectives?

A

The goals set in order to achieve its mission.

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3
Q

List 3 reasons

Why are corporate objectives important?

A
  • Helps with decision making
  • Helps departments work together to achieve a goal
  • They set the scene for functional objectives to be created
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4
Q

List 3/4 influences

What internal factors influence missions and objectives?

S/C/R/MV

A
  • Size
  • Culture
  • Resources
  • Management views
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5
Q

List 3/7 influences

What external factors influence missions and objectives?

P/L/E/E/T/S/C

A
  • Political
  • Legal
  • Environmental
  • Economic
  • Technical
  • Social
  • Competition
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6
Q

How can ownership influence mission and objectives?

A

For profit or non profit businesses has a big effect on objectives.

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7
Q

How can short-termism influence mission and objectives?

A

Shareholders can demand a quick return on their investment, which leads to short-term objectives to increase profits.

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8
Q

What is a strategy?

A

A medium to long-term plan of action developed to achieve a business’s objectives.

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9
Q

List 2 examples.

What is a strategic decision?

A
  • A fundamental decision that cannot be easily reversed and focuses on the long-term success of the company, looking for success.
  • Are long-term, high-risk decisions which determines direction of business.
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10
Q

List 3 examples.

What are some examples of strategic decisions?

A
  • Merging or demerging with companies
  • Diversifying a company’s product range
  • Moving to new geographical location
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11
Q

Give a context example of strategic decisions.

A

Stellantis makes it so Vauxhall invests £30bn in electric vehicles, By 2028.

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12
Q

What are tactics?

A

Short-term plans for implementing strategy, more focused on day-to-day activities.

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13
Q

Whats the impact of strategic decision making on functional decision making?

A

-The targets of the individual business departments which stem from corporate objectives made by board of directors.
-They’re short-term, lower-risk

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14
Q

What is a SWOT analysis?

A

Investigates a companies current strengths and weaknesses and uses them to help foresee future opportunities.

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15
Q

What does SWOT stand for? Give 2 examples of each.

A
  • Strengths: Things the company does well, qualities different from competitiors
  • Weaknesses: Things the company lacks, Unclear unique selling point
  • Opportunities: Few competitors in your area, press/media coverage of your companu
  • Threats: Emerging competitors, Changing regulating environments
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16
Q

How does SWOT analysis help plan strategies?

A
  • It considers the businesses individual circumstances and is done factual and objective way
  • Managers focus on opportunities building on strengths, convert weaknesses into strengths.
17
Q

List 3/4 advantages

What is an advantage of SWOT analysis?

A
  • It can easily be redone so businesses can adapt its strategy using it.
  • Low cost and straight forward
  • Can focus on internal and external
  • Helps recognise and asses risk
18
Q

What is benchmarking?

A

The process of measuring key business metrics and practices and comparing them- withing business areas or against a competitor, industry peers.

19
Q

List 3/3 disadvantages

What are the disadvantages of SWOT analysis?

A
  • Only covers issues that can be classified
  • Does offer solutions, therefore further analysis is needed
  • Can be biased