Chapter 1- Mission, objectives and strategy Flashcards
what are missions and objectives influenced by?
internal and external factors
what is the mission of a business?
The overall purpose of the business.
what is the mission influenced by?
what the owners what to achieve, their personal values and beliefs and market opportunities
what are business objectives?
goals set in order to achieve its mission
what is the difference between corporate and functional objectives
corporate objectives are set for the business as a whole and functional objectives are set by each department
what are the factors which influence business decisions?
- ownership: profit? non profit? Sole trader? PLC?
- short termism: Whether you want shoert term profits or long term profit?
- Internal environment: Size, culture, resources
- External environment: PESTLE
what is a strategy?
medium to long term plan of action to achieve a business objective
when only can a strategy be put in place?
when the business has outlined its objectives
what are strategic decisions?
part of the strategy- they are long term high risk decisions that determine the overall direction of the business
what are functional decisions?
Decisions made in individual departments in order to implement the overall strategy- tend to be more short term and low risk
what are the four areas of SWOT analysis?
Strengths
weaknesses
opportunities
threats
which parts of SWOT analysis can the business influence?
Strengths and weaknesses
what parts of SWOT analysis is out of the businesses control?
Opportunities and threats
what are the advantages of SWOT analysis?
- Factual and objective
- easily redone to account for the changing conditions
- shows where a business has a competitive advantage over its rival
