ch1 Flashcards
aim
what the business wants to achieve in long term, they are less specific than objectives and can be expressed as a vision
mison
goals and values in short term and are more specific
mission statements
states the businesses main purpose and also reflects goals and values and gives information
what information is provided in a mission statement
-the market that they oprate in
-key commercial objectives
-how they value its stakeholders
-the ethics they go buy
what are the main elements of a mission statement
-purpose(why the business exists,forwhom and why)
-values(corporate objectives and qualites like integrity and sustainability and innvation)
-standards and behavior(ethical behavior)
-strategy(outline how they want to achive smth or run the business)
What are three limitations of mission statements?
Must be continually assessed to ensure they’re still relevant
Can be unrealistic and over optimistic
Can be a waste of management time and resources
possible advantages of mission statements
1-help guide desion making of the firm
2-gives a sense of direction (brings workforce together)
3-helps generate profit
4-helps stay organized
5-show commitment to there costumers
who set corporate objectives
senior mangers
what are potential goals of the business
1-market share
2-profit levels
3-new poducts
4-ethical behavours
what is SMART
Spcific
Measureable
Agreed
Realistic
Time
what does specific mean
clearly states what a business is aiming to achieve
what does measurable mean
you can evaluate of it can be tracked or if the have been achieved
what does agreed mean
everyone has agreed to work towards one goal
what does realistic mean
the resources available and market condition are in favor for the goals to be achieved
what does time specific mean
a stated time frame to achive and a deadline is set
why should Corporate objectives be SMART?
so that the business is able to set achievable goals and not have high or low expectations of what they can achieve
what is funtional and departmantal objectives?
are more specific
to help make possible achieving the managers by setting day to day goals which include Human Resources, finance, operations, logistics and marketing
What are Departmental and Functional objectives?
-these are more specific than corporate objectives which set the day-to-day goals and may include human resources, finance, operations, logistics and marketing.
-these all refer back up the hierarchy to the corporate objective and missions statements, so that the goals and activities of the business are consistent
What is the Objectives Hierarchy?
it is a tool that helps analyse and communicate a project’s objectives
Aims
Mission Statement
Corporate objectives
Functional Objectives e.g. Finance, Marketing , Operations etc.
An objective will ultimately flow from the firm’s overall aim and be effective if it contributes to achieving the level above
why are individual objectives set?
part of performance management and give direction to the individual within the company
differences between small and large firms
large aim tawards profit and more finanatical objectives to satisfy stakeholders and easier to quantify
small are more direct and simple
main features of a large business
-maximining sales
-achieving cost efficiencies
-looking farer employees
-ensuring customers are satisfied
small business goals
Small businesses may have a wide variety of objectives, such as:
-To ensure that the company breaks even at he end of the tax year
-to improve the firm’s liquidity in the next six months
-To increase sales by 10% over the next 3 years
-To hire 5 new staff with skills in marketing, and build a strong marketing department over the next year
-reduce energy consumation
critical appraisal of mission statements and corporate aims
they could be to unrealistic or too optimistic
this is why they have to be reevaluated every once and while
the balance of a mission statement should be established like:
-what is the purpose of the mission statement
-what audience is it for
-are the aims and goals realistic
