3.7.1- Mission, corporate objectives, functional objectives and strategy

Question 1

What are missions?

Answer 1

A businesses overall purpose.

Question 2

What are objectives?

Answer 2

The goals set in order to achieve its mission.

Question 3

List 3 reasons

Why are corporate objectives important?

Answer 3

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

Question 4

List 3/4 influences

What internal factors influence missions and objectives?

S/C/R/MV

Answer 4

• Size
• Culture
• Resources
• Management views

Question 5

List 3/7 influences

What external factors influence missions and objectives?

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

Answer 5

• Political
• Legal
• Environmental
• Economic
• Technical
• Social
• Competition

Question 6

How can ownership influence mission and objectives?

Answer 6

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

Question 7

How can short-termism influence mission and objectives?

Answer 7

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

Question 8

What is a strategy?

Answer 8

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

Question 9

List 2 examples.

What is a strategic decision?

Answer 9

• 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.

Question 10

List 3 examples.

What are some examples of strategic decisions?

Answer 10

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

Question 11

Give a context example of strategic decisions.

Answer 11

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

Question 12

What are tactics?

Answer 12

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

Question 13

What are functional objectives?

Answer 13

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

Question 14

What is a SWOT analysis?

Answer 14

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

Question 15

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

Answer 15

• 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

Question 16

How does SWOT analysis help plan strategies?

Answer 16

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

Question 17

List 3/4 advantages

What is an advantage of SWOT analysis?

Answer 17

• 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

Question 18

What is benchmarking?

Answer 18

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

Question 19

List 3/3 disadvantages

What are the disadvantages of SWOT analysis?

Answer 19

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