Business Objectives & Strategy Flashcards
Mission Statement definition
Sets out the purpose of an organisation and thus gives its reason for existing.
Common focus of a mission statement?
- What the business wants to be
- The values of the business
Vision Statement definition
Sets out a business’s aspirations for the future.
Factors that can influence a mission?
- The values of the founder of the business
- The values of the business’s employees
- The industry of which the business is part of
- Society’s views
- The ownership of the business
What is business strategy?
The plan to achieve the vision
What are corporate objectives
Targets within the plan & measures of success.
Helps the business know when it has arrived.
Corporate objectives definition
Medium to long-term goals established to coordinate the business.
Strategic decisions definition
Judgements made by senior managers that are long term, involve a major commitment of resources and difficult to reverse
Strategy definition
The long-term plan to achieve the business’s vision through attaining its corporate objectives.
Tactics definition
Tactics are short-term decisions, usually involving relatively few resources, that are made to implement strategy.
Functional decisions definition
A judgment taken by managers responsible for one aspect of a business’s activities, such as marketing or Human Resources.
Internal influences on strategic and corporate objectives?
- Pressures for short-termism
- Business ownership
- Poor performance
- New leader
- Business culture
External influences on strategic and corporate objectives?
- State of the economy
- Global prices
- Technological changes
- Migration
What is short-termism?
Short-termism is the pressure to deliver quick results to the potential detriment of the longer term development of a company.
What is R&D?
Research and development is the generation and application of scientific knowledge to create a new product or develop a new production process which can increase the business’s productive efficiency.
