unit 7

Question 1

what is a mission statement

Answer 1

description about organisation so that shareholders know their intent.

Question 2

what are corporate objectives

Answer 2

overall objectives of the business driven by the mission statement - mid to long term

Question 3

benefits of corporate objectives

Answer 3

allows profit and revenue maximisation and helps growth and survival

Question 4

what are functional objectives

Answer 4

define objectives of each department

Question 5

key points of SWOT analysis

Answer 5

unique to each business
dynamic - constantly changing
regular updates required due to its dynamic
not a guarantee of success due to environmental change or poor representation

Question 6

define strategic

Answer 6

long-term decisions that a business makes in order to build its strategy and achieve its
ultimate goals. eg investing in training programs, purchase of new and improved equipment

Question 7

define tactical

Answer 7

shorter-term decisions that a business makes in order to support its strategy.
eg Product sales promotion, television advertising

Question 8

reasons for corporate objectives

Answer 8

survival, profit, growth, diversification, market position, Improve reputation

Question 9

model used to analyse overall performance of a business

Answer 9

Kaplan and Nortons balanced scorecard

Question 10

4 areas of Kaplan and nortons balanced score card

Answer 10

financial perspective, customer perspective, internal business process perspective, learning and growth perspective

Question 11

what does the financial perspective of Kaplan and norton look at

Answer 11

how does the business look to shareholders?
sales growth/operating income
objective is to increase liquidity
measures current ratio