7.1 Mission, corporate objectives and strategy

Question 1

What is the aim a business’ mission statement

Answer 1

To set out the organisation’s purpose

Question 2

What are the influences on a business’ mission statement

Answer 2

• Culture
• Ethos and values
• Shareholders
• Stakeholders

Question 3

What are the influences on a business’ corporate objectives

Answer 3

• Short-termism
• Business ownership
• Internal business environment
• External business environment

Question 4

Why does short termism influence a business’ corporate objectives

Answer 4

Pressures for short-termism, of focussing on short-term gains at the expense of long-term gains, can influence corporate objectives as managers seek short-term profit at the expense of long-term investment in R&D

Question 5

Why does business ownership influence a business’ corporate objectives

Answer 5

Owners in the private sector are likely to place emphasis on profit maximisation as where public sector organisations are likely to place emphasis on providing for a societal need

Question 6

Why does the internal business environment influence a business’ corporate objectives

Answer 6

Managers respond to changes in the internal environment

Question 7

Why does the external business environment influence a business’ corporate objectives

Answer 7

Managers respond to changes in the external environment

Question 8

What can businesses use to achieve their objectives

Answer 8

Strategic and tactial approaches

Question 9

What are strategy approaches

Answer 9

• Long-term plans
• Many resources
• Difficult to reverse once implemented

Question 10

What are tactical approaches

Answer 10

-Short-term plans
- Few resources
- Can be stopped or reversed if required

Question 11

What is the link between mission, corporate objectives and strategy

Answer 11

• A business mission will inform the choice of corporate objectives as corporate objectives will be designed in such way to meet the overall mission
• Businesses can use strategies to work towards their overall corporate objectives

Question 12

The difference between strategic and functional decisions

Answer 12

• Strategic decisions will influence departmental or functional decision making as every function must support the overall organisation

Question 13

What does SWOT analysis explore

Answer 13

• Strengths
• Weaknesses
• Opportunities
• Threats

Question 14

What is an internal strength

Answer 14

A trusted and reputable brand which is recognised by many

Question 15

What is an internal weakness

Answer 15

• Cash flow concerns
• Lower profit margins than others in the industry

Question 16

What is an external opportunity

Answer 16

An expanding market nationally or internationally

Question 17

What is an external threat

Answer 17

• A declining market
• Increased competition