theme 3: section 11- business objectives and strategy

Question 1

what is a mission statement

Answer 1

formal summary of aims and values of organisation

Question 2

hierarchy of business objectives

Answer 2

mission statement > corporate objectives > department objectives

Question 3

benefits and disadvantages of mission statements

Answer 3

advantage
- used to communicate the nature of the organisation to stakeholders
- used to focus strategies and energy of business in direction
disadvantage
- business will be biased
- customers may not even know what it is
- business may not actually follow it
- unrealistic
- lead to conflicts
- can be ambiguous

Question 4

what are corporate objectives

Answer 4

• set by senior management
• satisfy shareholders
• related to profit or dividends
• SMART

Question 5

what are SMART corporativa objectives

Answer 5

Specific
Measurable
Achievable
Realistic
Time bound

Question 6

what are department objectives

Answer 6

• divide up work into department
• each department sets their own objectives

Question 7

what is the purpose of a mission statemtns

Answer 7

• define essence of business
• sets out what company wants to achieve
• let’s public know what the product or service
  provides

Question 8

uses of mission statements

Answer 8

focus= helps focus and involve all employees
profitability= helps to motivate employees to become more efficient which could have an impact on profitability
identify= helps to create identity in competitive marketplace shows how the company’s products or services align with their core values e.g. innovation