3.7.1- Mission, corporate objectives, functional objectives and strategy Flashcards
3.7 Analysing the strategic position of a business
What are missions?
A businesses overall purpose.
What are objectives?
The goals set in order to achieve its mission.
List 3 reasons
Why are corporate objectives important?
- Helps with decision making
- Helps departments work together to achieve a goal
- They set the scene for functional objectives to be created
List 3/4 influences
What internal factors influence missions and objectives?
S/C/R/MV
- Size
- Culture
- Resources
- Management views
List 3/7 influences
What external factors influence missions and objectives?
P/L/E/E/T/S/C
- Political
- Legal
- Environmental
- Economic
- Technical
- Social
- Competition
How can ownership influence mission and objectives?
For profit or non profit businesses has a big effect on objectives.
How can short-termism influence mission and objectives?
Shareholders can demand a quick return on their investment, which leads to short-term objectives to increase profits.
What is a strategy?
A medium to long-term plan of action developed to achieve a business’s objectives.
List 2 examples.
What is a strategic decision?
- 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.
List 3 examples.
What are some examples of strategic decisions?
- Merging or demerging with companies
- Diversifying a company’s product range
- Moving to new geographical location
Give a context example of strategic decisions.
Stellantis makes it so Vauxhall invests £30bn in electric vehicles, By 2028.
What are tactics?
Short-term plans for implementing strategy, more focused on day-to-day activities.
Whats the impact of strategic decision making on functional decision making?
-The targets of the individual business departments which stem from corporate objectives made by board of directors.
-They’re short-term, lower-risk
What is a SWOT analysis?
Investigates a companies current strengths and weaknesses and uses them to help foresee future opportunities.
What does SWOT stand for? Give 2 examples of each.
- 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