Mission, Cooperate Objective and Strategy 3.7.1 Flashcards
influences on the mission of a business
External factors, such as the level of competition, economic conditions and possible regulation
The size of a business
The actual performance of an organisation
The extent to which a business demonstrates social responsibility in its actions
The nature of owners and important stakeholders in a business
internal influences on coporate objectives and decisions
Business ownership: Whether a business is profit making or non-profit making can have influence on corporate objectives and decisions
Ethics: A decision made on ethical grounds might reject the most profitable solution for a business
Resource constraints Resources can be financial, human or physical and can influence objectives
external influences on coporate objectives and decisions
Pressure for short-termism: this is where businesses focus on short-term profit objectives over long-term performance objectives
The external environment: such as changes in economic policy, environmental factors & demographic trends
benefits of cooperate objectives
give a sense of direction to, and guide the actions of, an organisation as a whole
They act as a focus for decision making and effort,
Success or failure can be measured with these
to improvements in efficiency and a more productive and motivated staff
difference between strategy and tactics
Often described as “strategy is long-term and tactics are short-term.” … Strategy and tactics are both how you will achieve your goals and objectives.
what is SWOT analysis
A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
The value of SWOT analysis
It is a source of information for strategic planning.
Builds organization’s strengths.
Maximize its response to opportunities.
Overcome organization’s threats.
It helps in identifying core competencies of the firm.
It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.
what are functional objectives
Functional objectives are those that relate to the specific functions of a business (e.g. marketing, operations, HRM, finance) and which are designed to support the achievement of corporate objectives.
what are the impacts of strategic decisions on functional decision making
When a major decision has been made, new objectives will need to be made which in turn will effect functional objectives. together the four sets of objectives (marketing, operations, HRM, finance) must match and work towards the organisations corporate objectives. All four must work together to make the target reachable
