Aims and objectives Flashcards
What is a business objective ?
A goal set by a business in the medium to long term
What is a functional objective ?
A target for an individual department
What is a corporate objective ?
Goals set by large businesses to take into account wants and needs of stakeholders
What is a vision statement ?
Sets out what business desires in the long term and key activities that will achieve this
What are 3 advantages of vision statements ?
- Guide for strategic planning & implementation
- Defines performance standards & expectations
- Communicates business purpose to stakeholders
What are 3 disadvantages of vision statements ?
- Difficult to get one that’s forward looking and challenging that’s achievable
- Employees view themselves as worthless if individual objectives don’t meet vision statement
- Ineffective if not communicated with all stakeholders
What is a mission statement ?
Short statement of business’s vision and values to help set aims & objectives
What are 4 advantages of mission statements ?
- Ensures same focus
- Provides starting point for strategic planning
- Shows investors how money is spent
- Assists customers with understanding ethics
What are 2 disadvantages of mission statements ?
- Too vague and long winded
- May not reflect reality of values
What are SMART objectives ?
Specific
Measurable
Achievable
Realistic
Time specific
What are the 5 main aims and objectives of a business ?
- Survival
- Profit maximisation
- Growth & gaining market share
- Increased shareholder value
- Ethics
