Topic 1.3: Organisational Objectives Flashcards
Vision Statement
Aims & Goals
Mission Statement
Purpose of business
Strategic Objectives
Long term goals (5 years)`
Tactical Objectives
Medium term goals (1-5 years) affecting a section of the organisation
Operational Objectives
Short term goals (day to day)
Profit Maximisation
Maximum difference between revenue and expenses
Dividends
A portion of the profits
Market share
The business’s share of the total market sales (greater the share the more profits made)
Internal growth
More employees, increasing sales, new products etc.
External growth
Merging or acquiring other businesses
Legal redress
Litigations
Ethical objectives
Company with fair business practices, ethical guidelines and established moral principles
Corporate Social Responsibility
Practices and policies taken by corporations intended to have a positive influence on the world
Market Penetration
Achieving high market share in existing markets with existing products
Diversification
Selling different, key products into new markets
Market Development
Selling existing products to new markets
Product development
Sale of newly-developed or new products in existing markets
Generic Strategies
Effects the company as a whole to reach its goals
Corporate Stategies
Used to reach Strategic Objectives (Long-term)
Market Standing
The extent to which a business has presence in the industry
Strategies
The medium to long-term plans of action to achieve the strategic objectives of an organisation
Tactics
Short-term methods used to achieve an organisation’s tactical objectives
Aims
General and long-term goals of an organisation/What an organisation wants
Objectives
Short-to-medium-term and specific targets an organization sets in order to achieve its aims
Corporate Culture
The accepted norms and customs of a business
Internal Factos
Within the control of the organization
External factors
Beyond the control of the organization
Ethics
The moral principles that guide decision-making and strategy
Business Ethics
The actions of people and organizations that are considered to be morally correct
Ethical code of practice
Documented beliefs and philosophies of an organization, so that people know what is considered acceptable or not acceptable within the organisation
Ansoff Matrix
An analytical tool that helps managers choose products and growth strategies
Product Extension Strategies
Placing an established product’s brand name on a new product that is in the same category
Brand Development
Ceating and distinguishing your company’s image, products and services from your competitors
Related Diversification
When a firm moves into a new industry that has important similarities with the firm’s existing industry
Unrelated Diversification
When a company enters an industry that bears no significant resemblance to the company’s current industry
Holding Company
Companies that own the controlling amount of stocks of other companies
Subsidiaries
Firms owned by a holding company
Customer Loyalty
Trust of the customer to the business making them coming back often
Litigation
Disadvantages faced legally causing business sebacks
Competitors
Similar companies
Suppliers
A person or a business entity that sells something
Stakeholders
All people/groups of people who are interested in the business
Stakeholders
All people/groups of people who are interested in the business
Survival
For a business to stay open
Sales Revenue Maximisation
The maximum amount of surplus that remains after all cost are paid
Profit Maximisation
Maximum amount of profit earnable
Growth
Increase in sales revenue or market share
Market Standing
The extent to which a business has presence in the industry
SWOT Analysis
A decision making tool for businesses: Strengths, Weaknesses, Opportunities and Threats
Strengths
Internal factors that help the business to better achieve its objectives
Weaknesses
Internal facts that prevent/delay businesses from achieving their goals
Opportunities
External possibilities for future development
Threats
External facts that hinder the prospects of the organisation
Competitor Analysis
The threats posed by a rival or the strengths of a competitor
Assessing Opportunities
The development & growth of the organisation
Risk Assessment
The likely effects of investing in a certain project or location
Reviewing Corporate Strategy
The market position or direction of the business
Strategic Planning
The decision to diversify or expand overseas
Internal factor
Strengths & Weaknesses, what the business is currently facing
External factor
Opportunities & threats, what the business is likely to face in the near future
SMART Objectives
Targets that are Specific, Measurable, Achievable, Realistic and Time constrained
Them and us cuture
Exists in the workplace if there is a psychological divide between senior management and subordinates
