Using Objectives And Strategies

Question 1

Why are decision trees used

Answer 1

Help managers quantity risk

Question 2

What objectives do shareholders have

Answer 2

Want a high dividends and a high share price

Question 3

What objective do employees want

Answer 3

Good pay and working conditions

Question 4

What objective do suppliers want

Answer 4

To be paid a fair price and on time

Question 5

Different objectives that customers want

Answer 5

Best possible quality at lowest possible price

Question 6

What different objectives to local resident want

Answer 6

Business to create jobs

Not to pollute or damage the local area

Question 7

Advantages of a mission statement

Answer 7

1. Mission statements can give staff a sense of shared purpose
2. Encourage them to work towards common goals - more likely to achieve aim
3. Gives consumers a clear idea of the company’s values

Question 8

Disadvantages of a mission statement

Answer 8

1. Sometimes use them to create a good public image rather than actual aims
2. Isn’t long enough for the business to fully express what it’s about

Question 9

External factors which could affect a corporate plan?

Answer 9

1. New laws can affect a business reaching it’s plan
2. Customers spending habits are affected by economic factors e.g high interest rates, high unemployment etc
3. Ageing population
4. Popularity of internet shopping or availability of new machinery

Question 10

Internal factors affecting corporate plan?

Answer 10

1. Skilled and motivated staff
2. Make product amazing
3. Business finance
4. How much they can produce

Question 11

What are contingency plans

Answer 11

Panning what to do if something unexpected happens

Question 12

What are corporate objectives

Answer 12

General objectives that refer to the business as a whole