Business - 3.7 Topic 1

What is a mission statement?

A declaration of the businesses purpose and long-term aim.

What is a vison statement?

What the business wants to do in the future

What are some reasons for having a mission statement?

• Makes stakeholders clear on the purpose of the business

• Helps with strategic planning

Influences on mission statement

• Size of business

• Range of activities it offers

• Nature of owner and stakeholder

• Changes over time

• Performance

• External factors

What are corporate objectives?

• Specified intended outcomes of business strategy and activity

• Targets which a business sets to help it achieve its aims

Examples of corporate objectives

• Sales revenue

• Profit

• Return on investment

• Growth

• Market share

• Cash flow

• Value

What are some internal influences on corporate objectives?

• Business ownership

• Organisational culture

• Leadership style

• Attitude to profit

• Stakeholder influence

External in fluences on corporate objectives

• Economic factors

• Short-termism

• Competition

• Legal factors

What is short-termism?

When a business prioritises short term performance.

It doesn’t think of- market share, quality, innovation and reputation.

What is strategy? And is it short or long term?

How the business will achieve the objectives it has set.

Long-term

What are tactics? And is it short or long term?

The stepping stones to the strategy.

Short-term