Business objectives and strategy Flashcards
mission statement definition
sets out the purpose of an organisation and thus gives its reason for existing
vision statement definition
sets out a businesses aspirations for the future
what is the difference between a mission statement and a vision statement
mission statement states a businesses purpose and a vision statement sets out what it wants to do or be in the future
how does a mission statement affect a stakeholder
relates to the businesses current position and its intended to provide information for stakeholders
how does a vision statement affect stakeholders
tend to be long term as they look to the future and can be a source of inspiration to stakeholders
what is the order to achieve the mission statement
-> vision statement
—> strategy (how will it get there)
——–> corporate objective (targets within the plan and measure sucess)
5 influences on a businesses mission statement
- values of the founder
- values of employees
- industry the business is part of
- society’s views
- the ownership of the business
corporate objectives definition
are medium- to long-term goals established to coordinate the business
- turn the mission statement into something more quantifiable
strategic decisions definition
are judgements made by senior managers that are long term, involve a major commitment of resources and are difficult to reverse
shareholder returns definition
the financial benefits derived by shareholders from buying a company’s shares and are the combination of an appreciating share price and dividends paid
dividends definition
that part of a company’s profits that are paid to shareholders in proportion to the number of shares they own
4 external influences on corporate objectives and strategic decisions
- state of the economy
- global prices
- technological changes
- migration
4 internal influences on corporate objectives and strategic decisions
- poor performance
- new leader
- business culture
- pressures for short-termism
short-termism definition
the pressure to deliver quick results to the potential detriment of the longer term development of a company
business culture definition
encompasses the values, attitudes and beliefs of those who work for a business
strategy definition
a long-term plan to achieve the businesses vision through attaining its corporate objectives
tactics definition
are short-term decisions, usually involving relatively few resources, that are made to implement a strategy
functional decision definition
a judgement taken by managers responsible for one aspect of a business’s activities, such as marketing or human resources
how do functional decisions and strategic decision link
functional decisions have to be coordinated so the different functions work together to meet and support the strategic decision
