Functional Objectives & Strategies Flashcards
Aims / goals
General statements of what a business intends to achieve. Precise details of those intentions are set out in objectives
Business unit strategy
How a business attempts to compete successfully in a particular market
Corporate objectives
Objectives that relate to the business as a whole. Usually set by top management.
Corporate strategy
Concerned with the overall purpose and scope of the business activities
Cost leadership
A business strategy concerned with aiming to be the lowest-cost producer in an industry. Usually requires exploitation of economies of scale
Functional objectives
Set for each major business function – designed to ensure that the corporate objectives are met
Mission statement
A statement of the overall purpose of the business
Shareholder value
Where shareholders earn a return from their investment which is greater than their required rate of return
SMART objectives
Objectives that are more likely to be achieved because they are Specific, Measurable, Achievable, Realistic and Timed
Social responsibility
The way in which a business meets its responsibilities to society as a key external stakeholder
SWOT analysis
Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider
Targets
Similar to objectives. Targets are often set at an individual or team level
