3.7.1 - strategic missions and objectives

Question 1

what are 3 features of strategic decision?

Answer 1

• high risk because they’re a major investment
• they are used to help enter a new market or restructure of a model/product
• they are used to assess existing position of a business

Question 2

what are the 5 internal influences on strategic decision?

Answer 2

• ownership
• power of stakeholders
• business culture
• resource constraints
• ethics

Question 3

what ‘ownership’ influences need to be considered?

Answer 3

• whether the ownership is profit or non-profit
• to what extent is this
• looking at what type e.g.) sole trader, Ltd, PLC

Question 4

what ‘power of stakeholders’ influences are there?

Answer 4

• consider how much power they have to influence decisions
• stakeholder mapping

Question 5

what ‘business culture’ influences are there?

Answer 5

• employee resistance to change
• the willingness to take risks

Question 6

what are some examples of ‘resource constraints’ influences?

Answer 6

• financial
• human
• physical
• availability of resources

Question 7

what ‘ethics’ influences need to be thought about?

Answer 7

• ethical vs profit maximisation
• benefits to stakeholders