7 - Mission, Corporate Objective & Strategy Flashcards
What Are Strategies?
Are medium to long term plans made by a business to meet its corporate objectives.
Who Are Strategies Created By?
Senior managers.
What Do Strategies Require?
An investment of resources.
What Is A Mission?
The overall reason for the businesses existence.
What Does A Mission Determine?
The businesses strategic position.
What Is A Mission Statement?
Written statement that states the purpose of an organisation.
What Does A Mission Statement Provide?
Common focus for everyone within an organisation.
What Are Some Influences On The Mission?
(6 Points)
~ Personal beliefs.
~ Values and objectives of the leaders.
~ Business ownership.
~ Value and relative power of stakeholders.
~ Nature of the industry.
~ Degree of competition.
What Are Corporate Aims?
The long term targets and plans to fulfil the mission statement.
What Are Corporate Objectives?
The medium to long term quantifiable targets to fulfil the mission statement.
What Is A Corporate Strategy?
The actions to be taken by the business to achieve its objectives.
What Is The Order In Objectives For The Business?
Mission statement.
Corporate aims.
Corporate objectives.
Corporate strategy.
What Is Short Termism?
Pressure on the business in the short term, which may be at the cost of long term growth.
What Are Internal Influences On Business Ownership?
(5 Points)
~ Mission statement.
~ Leaders objectives and values.
~ Performance.
~ Organisational culture.
~ Internal stakeholders.
What Are External Influences On Business Ownership?
(5 Points)
~ External environment (PESTEL).
~ Investors objectives.
~ Competitive environment.
~ Global markets.
~ External stakeholders.
What Is Functional Decision Making?
Decisions made within a business by managers of a specific functional area.
What Will Strategic Decisions Impact Functional Decisions On?
(4 Points)
~ Marketing.
~ Finance.
~ Operations.
~ Human resources.
What Is SWOT Analysis Used For?
(2 Points)
~ To identify the internal strengths and weaknesses and the external opportunities and threats to a business.
~ Helps inform decision making.
What Are The Values Of SWOT Analysis?
(3 Points)
~ Structured approach to analysing a business.
~ Considers both internal and external issues.
~ Includes both qualitative and quantitative factors.
What Can SWOT Analysis Do?
(4 Points)
~ Maximise strengths.
~ Minimise weakness.
~ Take advantage of opportunities.
~ Avoid threats.
