UNIT 1 ALL KEY TERMS Flashcards
What is a mission statement
It is a long term, breif and motivating declaration of an organization’s purpose of existence, what they do and who they are.
What is strategic objective?
it is the long term goals of a business which could include profit maximization, growth and increased market share.
What are the SMART objectives?
it is the framework to set clear and effective goals for a business.
1. Specific: objective must be clear and precise
2. Measurable: must be smth u can measure
3. Achievable: realistic not impossible goals:
4. Relevant: should align with overall goals
5. Time bound: should be a deadline/timeframe
What are tactical goals?
Short term goals that affect units of an organization. they are specific goals that guide the daily functioning of a certain department or organization
What is a vision statement
an organization’s long term aspirations and what they aim to achieve in the future
What is a stakeholder
they are individuals, businesses, or groups with a vested interest in the activities and outcomes of a specific organization
What are internal shareholders
they are individuals or groups who are part of the organization
eg: employees, managers, owners, directors
Who are the internal stakeholders in an organization
Employees, directors, managers, owners
What are the key interests of employees as internal stakeholders?
- job satisfaction
- job security
- Peter pay and bonuses
- career progression
equal opportunity
What are the three levels of management, and what are their roles?
senior: plans long term strategy
middle: runs departments and implements strategies
junior: handles day to day operations
What rights do shareholders have as internal stakeholders?
dividend payments, voting right, financial return on investment
How do employees impact the organization as internal stakeholders?
through their level of motivation and productivity which directly effects business performance and sucess
What are external shareholders
they are individuals or organizations outside the business but with a direct interest in its actions and performance
eg: customers, suppliers and government
What do financiers expect from a business
to be financially healthy, repay debts on time and provide a competitive return on investment.
What is the role of labor union as external stakeholders
they provide workers right, advocate fro better pay and conditions
What interests do suppliers have in a business?
securing contracts, receiving timely payments and getting fair prices for their goods/services.
What are examples of stakeholder conflicts
- employees may demand higher wages which can reduce shareholder profit
- senior managers may demand higher bonuses which effects shareholder dividends
3, employees may invest in new technologies which can lead to Job loses
What is franchising?
it is a business model where the franchisor grants the franchisee to operate under its brand, name and business system
What is a franchisor?
it is the original business that owns the brand, name, product and business system. it grants the right to use its business model for franchisees
What is a franchisee
an individual or business that buys the right from franchisor to operate under its brand and business system, while following franchisor rules.
What are advantages and disadvantage of franchising
ADV:
1. franchising allows business to quickly expand without financial risk
2. franchisees have a ventured interest n the success of the business which leads to better management
3. franchisees cover set and operational costs which lower franchisors expenses
DISADV:
1. franchisors cannot control day to day operations of franchises
2. poor management by franchisees can harm overall brand reputation
3. franchisors earn less per unit as they share profits with franchisees via royalties.
What are ethical objectives
- they are specific goals a business sets to act morally and responsibly towards stakeholders and the environment
eg: reducing carbon emission
using fair trade suppliers
Why are advantages and disadvantages of ethical objectives
ADV:
1. increased customer satisfaction
2. enhanced reputation
DISADV:
1. Higher costs
2. Conflict with profit goals
What is Ansoff Matrix
it is a strategic planning tool used by businesses to identify and evaluate growth strategies based on product and markets
