Business Objectives Flashcards
What is a mission statement?
a qualitative statement that sums up why a business exists/ its values.
what is needed for an effective mission statement?
understood by all, unique to their company’s values, concise, reflect CEO’s vision, exciting inspiring and motivational, different from competitors
What is needed to make an objective?
SMART. Smart, Measurable, Achievable, Relevant, Time-bound
What is an aim?
a long term plan from which business objectives are derived
What is an objective?
a target which must be achieved in order to realise the stated aim.
a time assigned target derived from the goals and set in advance of strategy.
What is the purpose of having objectives?
reduce uncertainty,provide sense of unity, clear decisions, measure success, motivation (PRP- performance related pay)(recognition),gives shareholders information on business, help derive targets, help realise vision.
What is the hierarchy of objectives?
Mission-corporate/strategic-functional-team-individual
What are the sections of a business?
Finance, Marketing, HR(human resources), operations
What is Marketing in a business?
department advises business on trends, purchasing habits, decides how to advertise and promote
What is HR in business?
Overlook human resources and manage staff, deal with recruitment, training, financial intensives, equal opportunities, dismissals
What is Finance in a business?
Identify what can be bought and what is affordable. What budgets are set for each function. Monitors spending levels
What is operations in a business?
managers supply chain with materials and components, also plan flow of work
What influences if a business can achieve objectives?
competitors actions, staff morale productivity, demand, trends, tastes, economy, age of business, legal status, ownership, views of owners and managers, legalisation process.
What is a corporate objective?
Corporate objectives are objectives that effect the entirety of the business and relate to each stage of the hierarchy.
What is a functional objective?
This applies to the function the business has targeted
