relationship between missions and objectives Flashcards
1
Q
what is a mission statement
A
A qualitative statement of an organisation’s aims which describes the general purpose of the organisation.
2
Q
what are aims
A
Aims are long-term plans from which its corporate objectives are derived.
Tend to be qualitative rather than quantitative
3
Q
what are objectives
A
medium to long-term targets established to coordinate the business
4
Q
what is a smart objective
A
Specific
Measurable
Agreed
Realistic
Time bound
5
Q
what are common business objectives
A
- survival
- break-even
- sales growth and maximisation
- sales growth and/or maximisation
- growth and expansion
- reducing risk
- Diversification
- Improving cash flow and liquidity
- Increasing market share
- Increasing shareholder value
- Maximising customer satisfaction
- Social and ethical objectives
- Staff retention, engagement, motivation and morale
6
Q
what is Diversification
A
Establishing a USP, launching new products in new markets
7
Q
ways to reduce risk
A
By releasing more products or operating in more countries
8
Q
why set objectives
A
- clear set of guidelines
- co-ordinate business activity
- motivate workers
- emphasise what is important
- influence the actions of other workers