Section Seven Flashcards
What is a mission of a business?
the mission of a business is its overall purpose.its influenced by what the owner want the business to achieve,their personal values and beliefs, and what market opportunities there are
Corporate objectives
The goals of the business as a whole
Functional objectives
The objectives of each department or function set t o help achieve the corporate objectives
What can objectives be set for
objectives can be set for profit,growth,survival,cash flow and social/ethical performance
Factors affecting business’s objectives
Ownership:
short-termism:
internal environment:
external environment:
what is a strategy?
a strategy is a medium to long term plan of action developed to achieve a business;s objectives
how can a strategy be put into action?
a strategy can only be put into place once an organisation has outlined its aims and objectives.businesses need to decide what they want to achieve before they can work out how to achieve it.
what are tactics?
tactics are short-term plans for implementing strategy, so are more focused on day to day activities
what is swot analysis?
a SWOT analysis is a four factor model that details the strengths,weaknesses, opportunities and threats facing a business- this helps manger to make strategic decisions
why is SWOT helpful?
SWOT analysis is a very useful tool in developing strategy. it considers the business’s individual circumstances and is done in a factual and objective way
2 adavtage of SWOT analysis?
One advantage of SWOT analysis is that it can easily be redone to take into account changing conditions. this means that a businesses can adapt its strategy using the new SWOT analysis
SWOT analysis also lets the business know where it has a competitive advantage over its rivals the business can change its strategy to focus on thee elements.
