What is Business?

Question 1

The hierachy of objectives in business:

what are the 5 objectives?

as increasingly strategic increases + increasingly detailed decreases

Answer 1

1. mission
2. coorporate/strategic
3. functional
4. team
5. individual

Question 2

The hierachy of objectives in business:

what is a mission?

Answer 2

qualiative statement of business aims

broken down into aims, core values and objectives

Question 3

The hierachy of objectives in business:

what is a long term plan from which business objectives are delivered?

within a mission

Answer 3

aims

Question 4

The hierachy of objectives in business:

what is a taregt that must be achieved i order to realise the stated aim

within a mission

time assigned targets derived from the goals + set in advanced of strategy

Answer 4

objectives

Question 5

The hierachy of objectives in business: Define:

coorporate/ strategic objectives

Answer 5

3 - 5 goals

whole company works towards

Question 6

The hierachy of objectives in business: Define:

functional objectives

Answer 6

day to day goals

set by managers

Question 7

The hierachy of objectives in business: Define:

team objectives

Answer 7

goals set for individuals/teams for the day

Question 8

The hierachy of objectives in business: Define:

individual objectives

Answer 8

all work contributes to larger goals

Question 9

Coorporate objectives:

what are they often related to?

Answer 9

• profit (value, margin)
• return on investment (ROCE)
• growth (profit + earning per share)
• market share

• survival
• cash flow
• sales revenue
• shareholder value
• coorporate image + reputation (ethical + social)

Question 10

SMART

what does SMART abbreviate for?

Answer 10

Specific
Measurable
Achievable
Relevant
Time

specific = objectives that state exactly what to achieve
measurable= obejectives capable of measurement
achieveable= realistic objectives given circumstances
relevant= relevant objectives
time bound= objectives set within time frame in mind

Question 11

Define:

1. scientific?
2. business objective/ budget?
3. organisationsl structure?
4. attitudes to risk?
5. available + reliable data?
6. external environment?

Answer 11

1. time consuming + costly
2. sets scene for how decisions are made
3. whom has authority to take decisions
4. close link to business culture
5. data available to support a scientific approach
6. how fast an external environmet is changing