Topic 7.1 - Mission Corporate Objectives and Strategy

Question 1

The Mission Statement is…

Answer 1

• the overriding purpose of the business
• the reason for its existence
• a strategic perspective
• supports the stated ‘vision’ for the future

Question 2

What makes a good mission?

Answer 2

• excites, inspires, motivates and guides
• easy to understand and remember
• differentiates business from competitors

Question 3

Functional Objectives

Answer 3

set for each key business function and are designed to ensure that the corporate objectives are achieved

Question 4

Examples of Functional Objectives

Answer 4

• increase sales
• reduce costs
• increase cash flow
• improve customer satisfaction

Question 5

Internal Influences on Corporate Objectives and Decisions

Answer 5

• business ownership
• attitude to profit
• ethical stance
• organisational structure
• leadership
• strategic position and resources
• stakeholder influence

Question 6

External Influences on Corporate Objectives and Decisions

Answer 6

• short-termism
• economic environment
• political/ legal environment
• competitors
• social and technological change

Question 7

What is ‘Short-Termism’?

Answer 7

is where a business prioritises short-term rather than long-term performance