Coporate Objectives Flashcards
What is a mission statement
A qualitative statement of an organisations aims
What is the hierarchy of business objectives?
- Mission statement and general aims
- Corporate objectives
- Department Objectives
Criticism of mission statements?
They’re used as a PR tool
How should corporate objectives work?
- It should flow from the mission statement and corporate vision
- Need to be SMART
What does SMART stand for?
Specific
Measurable
Achievable
Realistic
Time-related
What are the uses of mission statements?
Focus
Profitability
Identity
What are the limitations of mission statements?
- Can be unrealistic
- Can be a waste of management time and resources
- Can be ambiguous
What are corporate timescales?
The expectation of when a return will be achieved
What is short-termism?
When a business is only interested in a quick financial reward and can affect the long term
What is Long-termism?
A business approach that prioritises the future of the business over the short term success.
What are shareholders?
Shareholders are individuals, institutions, or entities that own shares or stock in a company
What are stakeholders?
Stakeholders are a broader group that includes not only shareholders but also individuals or entities that have an interest or “stake” in the company such as employees and customers
What is Corporate Social Responsibility?
business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders
What 3 examples of CSR?
- Reduce climate change
- positive regard for human rights in employment
- Using reusable resources
What are the advantages of a CSR approach?
- keeps stakeholders happy
- stimulates innovation
- Cost reduction
What are the disadvantages of a CSR approach?
- Some customers don’t care
- motive behind it
What does SWOT stand for?
Strength (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
What is SWOT used for?
Strategic Planning: Inform the development of strategies and plans for the organization.
Decision Making: Assist in making informed decisions based on a comprehensive analysis of internal and external factors.
Goal Setting: Align organizational goals with its internal capabilities and external opportunities.
Risk Management: Identify and mitigate potential risks and challenges.
What is ansoffs matrix?
A table made of current markets, new markets, current product and new products
What are the limitations of Ansoff’s Matrix
• It only shows part of the picture
• It oversimplifies the market
• Large MNCs may need thousands of sub options and strategies
What is porters strategic strategy?
A table made of three generic business strategies that give a competive advantage
- Cost leadership
- Differentiation
- Focus
What is cost leadership?
Making products at the lowest cost
What is differentiation?
When a product is unique compared to others in the market
What is focus?
the product or service will serve a very small specific niche, high costs are passed on to customers, no close substitutes
What are the uses of porters strategic matrix?
- establishes a clear direction for the business to go in
- Identifies when a business may be in trouble
What are the limitations of porters strategic matrix?
• Not as relevant in very dynamic markets
• May not be useful in a crisis situation
• Over simplifies the market structure
What is the Boston matrix?
a marketing planning tool which helps managers to plan for a balanced product portfolio based on market share and market growth
