Theme 3 Flashcards
Mission Statement
Set out an organisations purpose and aims
Corporate objectives
Set by senior management to help a firm achieve its mission statement and aimed at satisfying shareholders
Critical appraisal
The purpose of the mission statement and their intended audience are often considered in appraisal
Corporate Timescales
Strategy and the expectation of when a return will be achieved
Short-termism
Businesses focused on quick financial reward at the expense of investment
Long-termism
Business focused on sustained growth where CSR and ethical behaviour are considered
Business Ethics
Moral principles that guide the way a business behaves
Remuneration
Reward for employment in form of pay
Corporate Social Responsibility (CSR)
Company should consider the environmental, workplace and social impact of business decisions
Corporate Culture
Norms and values of a business
Strong Cultures
Particularly difficult to change as they are deeply embedded into the ways a firm does things
Weak Cultures
Wide range of sub-cultures exist and one dominant culture isn’t very embedded
Stakeholders
Anyone who has an interest in the business or may be affected by the businesses’ activities
Internal Stakeholder
Those inside a business who may be affected by corporate decisions
External Stakeholders
Those outside a business who are affected by the businesses’ decisions
Stakeholder Influence
The business considers all of its stakeholders in decisions/objectives
Shareholder Influence
The business should focus purely on shareholder returns (increasing share price and dividends) in its business decisions/objectives
Stakeholder Approach
Idea that more profit can be earned in the long-term by a firm looking after their stakeholders e.g good quality service = returning customers
Ansoff’s Matrix
Analysis tool that is used to identify the level of risk
Porter’s Strategic Matrix
Corporate strategy to help a firm find a competitive advantage
Boston Matrix
Analysis tool of a firm’s product portfolio in terms of market share and market growth, used to know when to launch a new product and have a diversified portfolio
SWOT Analysis
Tool that is used to make strategic decisions to achieve corporate objectives
PESTLE Analysis
Analysis tool that aims to look at external influences that can impact the business
Competitive Environment
Dynamic market in which a business competes and functions
Non-Competitive Market
Dominated by a single producer (monopoly) or a few large businesses (oligopoly)
Porter’s Five Forces
Analyse how a wider range of factors affect the environment a business operates in
Business Growth
Business needs to expand and seek options to generate profits
