7. Mission And Corporate Flashcards
(34 cards)
What is the mission of a business?
The overall purpose of a business influenced by owners’ goals, personal values, and market opportunities
The mission shapes the direction and focus of the business.
What are corporate objectives?
Goals set by the business as a whole to achieve its mission
These differ from functional objectives, which are set for individual departments.
List three types of objectives a business can set.
- Profit
- Growth
- Survival
What internal factors influence a business’s objectives?
- Ownership
- Short-termism
- Internal environment
How does ownership affect a business’s objectives?
The form of the business (for-profit or non-profit) influences its goals and decision-making freedom
For example, sole traders have more freedom compared to limited companies.
What is short-termism in the context of business objectives?
The tendency for shareholders to demand quick returns, leading to short-term profit objectives
What external factors can influence a business’s objectives?
- Political
- Legal
- Economic
- Social
- Technological
- Environmental
- Competition
What is a strategy in business?
A medium to long-term plan of action developed to achieve a business’s objectives
What is the relationship between strategy and corporate objectives?
A corporate strategy is based on achieving corporate objectives
What are tactics in business?
Short-term plans for implementing strategy, focused on day-to-day activities
What differentiates strategic decisions from functional decisions?
Strategic decisions are long-term, high-risk and determine the overall direction, while functional decisions are short-term, lower risk, and made within individual departments
What is a SWOT analysis?
A tool used to identify strengths, weaknesses, opportunities, and threats facing a business
Fill in the blank: The acronym SWOT stands for _______.
Strengths, Weaknesses, Opportunities, Threats
How can changes in the economy affect a business’s objectives?
They may shift focus from profit maximization to survival
What might consumer interest in environmental issues influence?
A business’s decision to set objectives to minimize pollution
Provide an example of how functional decisions support strategic decisions.
If a business’s objective is to increase sales by 5%, the strategic decision may be to expand production capacity, leading HR to recruit more staff
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
What is a strategy?
A plan to achieve specific objectives
Name three internal factors that could influence a business’s objectives.
- Strengths
- Weaknesses
- Mission
Name three external factors that could influence a business’s objectives.
- Opportunities
- Threats
- Economic conditions
What is the purpose of SWOT analysis?
To plan strategies by assessing strengths, weaknesses, opportunities, and threats
Fill in the blank: SWOT analysis helps businesses to _______.
[plan strategies]
What is one advantage of SWOT analysis?
It can easily be redone to account for changing conditions
True or False: SWOT analysis is done in a subjective way.
False
