Section A content (component 2) Flashcards
What is a vision statement?
a description of what a business sets out to achieve in the medium to long term
What should a vision statement provide?
A clear guide of the future direction of the business
What can a vision statement help to do?
Direct strategic decision making across the business
What are vision statements normally used for?
Internal purposes that are relevant to internal stakeholders
Which stakeholders do mission statements focus on?
communicating a business’ intentions to both internal and external stakeholders
What does a mission statement focus on?
What the business wants to do in the present
What is enclosed in a mission statement?
A broad statement of a business’ aims and values, guiding the everyday operations and decision making
What is the main purpose of a mission statement?
to give an organisation cohesiveness
What are business objectives?
specific and measurable targets that a business will set to achieve its aims
What are the 6 categories of business aims?
- Profit maximisation
- Increase shareholder value
- Growth
- Corporate social responsibility
- Survival
- Sales maximisation
What does SMART stand for?
Specific
Measurable
Achievable
Realistic
Time limited or constrained
What is a benefit of businesses setting vision statements, mission statements, and objectives?
- Communicates to employees how they can contribute and can improve employee engagement
