Business Objectives and Strategy Flashcards

Vocabulary flashcards based on lecture notes about business objectives and mission statements.

What are Business Objectives?

What a business aims to accomplish; these are the desired outcomes that guide its actions and decisions.

What is a Business Strategy?

The specific actions and approaches a business uses to achieve its objectives, including how it competes and operates.

Meaning of SMART Objective?

What is a SMART Objective?

An objective that is Specific, Measurable, Achievable, Relevant, and Time-bound, ensuring it is clear and trackable.

Why consider Stakeholder Views?

Why is it important to consider stakeholder views?

Different perspectives from those who have an interest or concern in the business, which can influence the mission and direction of a company.

What are Analytical Tools?

What are Analytical Tools?

Methods and resources used by businesses to evaluate their position, make strategic decisions, and plan for the future.

Hierarchy of Business Objectives?

How is the Hierarchy of Business Objectives structured?

The arrangement of objectives from broad mission statements to specific departmental goals, providing a clear path for the business.

Mission Statement Purpose?

What is the Purpose of a Mission Statement?

To clearly define the company's vision, values, and overall direction, guiding its actions and decisions.

Mission Statement Audience?

Who is the Mission Statement Audience?

Employees, stakeholders, and the public, as well as anyone who should understand the company's goals and values.

Explain Corporate Strategy

What is Corporate Strategy?

The actual actions and plans a business implements to achieve its mission and objectives, including resource allocation.

Explain Business Aim

What is a Business Aim?

The broad, overall target or goal that a business seeks to achieve, often long-term and aspirational.

Explain Business Objectives

What are Business Objectives?

The specific, measurable steps a business needs to take to meet its overall aims, providing a clear roadmap.

Explain Vision

What is a Vision?

A long-term view of what the business aspires to become, guiding its strategic direction and growth.

Explain Values

What are Values?

The core principles that guide a business's actions, reflecting its ethical and cultural standards.

Explain Core Activities

What are Core Activities?

The main operations and services that define a business, fulfilling its primary function and purpose.

Explain Stakeholders

Who are Stakeholders?

Individuals or groups with an interest in the business, including shareholders, employees, customers, and the community.

Explain Ethical Stance

What is an Ethical Stance?

The business's commitment to moral principles and responsible conduct, influencing its decisions and actions.

Explain Mission Statement Intent

What is the Intent of a Mission Statement?

To express the business's main goal and purpose, communicating its core identity and values.

Explain General Aims

What are General Aims?

Broad statements of what a business wants to achieve, providing a general direction without specific targets.

Explain Public Relations Tool

What is a Public Relations Tool?

A method used by businesses to improve their image and reputation, enhancing stakeholder perceptions.

Explain Corporate Vision

What is a Corporate Vision?

The long-term aspiration of where the business wants to be in the future, guiding its strategic direction.

Explain Purpose

What is the Purpose of a business?

The fundamental reason for the business's existence, guiding its mission and activities.

Explain Values

What are Values in a business context?

The emotional investments that guide a business's actions, reflecting its core beliefs and principles.

Explain Standards & Behaviour

How do Standards & Behaviour influence a business?

The ethical behavior and commitment to high standards that shape a business's culture and operations.

Explain Strategy

What does Strategy entail for a business?

How the business will achieve its main objectives, including resource allocation and competitive positioning.

Explain Corporate Objectives

How do Corporate Objectives guide a business?

By giving a business direction and a purpose for actions, ensuring alignment with its mission and vision.

What is an example of a Business objective?

What is an example of a business objective?

To make £10,000 profit each month for the next year, providing a clear and measurable goal.

Explain Shareholders

Who are Shareholders?

Individuals or institutions that own shares in a company, having a financial stake in its success.

Explain Operating Profit

What is Operating Profit?

Profit from a company's core business operations, excluding interest and taxes, reflecting operational efficiency.

What does SMART means?

What does SMART stand for?

Specific, Measurable, Achievable, Relevant, Time-Bound, ensuring objectives are well-defined and attainable.

Explain Corporate Objectives Development

How is Corporate Objectives Development implemented?

Specifically to the company, its history & vision, ensuring alignment with its unique context and goals.

Department Objectives

What are examples of of Department Objectives?

Objectives for sales, marketing, human resources, operations, and finance, supporting overall corporate goals.

Marketing Department Objectives Example

What would be an objective for the Marketing Department?

Increase sales 3\% each quarter, providing a specific and measurable target to boost revenue.

What are examples of Objective Hierarchy?

What is Objective Hierarchy?

Aims, mission statement, corporate objectives, functional objectives, in that respective order.

What is the Essence of the Business?

What is the Essence of the Business?

The fundamental purpose and reason for the business's existence, guiding its mission and activities.

How does Employee Focus impact?

How does Employee Focus contribute to the success of the business?

Helps involve all employees in the business's goals, fostering commitment and alignment.

What is the Mission Statement Use?

How can a Mission Statement be used within a business?

Focus - Helps to focus and involve all employees in the business, aligning their efforts with company goals.

How does Profitability impact the business?

How does Profitability impact a business?

Helps to motivate employees to become more efficient, which could have an impact on profitability

Mission Statement Use

How can a Mission Statement be used to improve Profitability?

Motivates employees to become more efficient, enhancing profitability.

Identity - Competitive Marketplace

How does Identity help a Competitive Marketplace?

Helps to create an identity in a competitive marketplace, distinguishing the business from rivals.

Mission Statement Use

In what way does a Mission Statement affect a competitive marketplace?

Helps to create an identity in a competitive marketplace, differentiating the business.

What are risks of Unrealistic Goals?

What happens when Unrealistic Goals are set?

A mission statement that sets goals which are not achievable may create false expectations.

Waste of management time limitation

What is a Waste of management time limitation?

If the mission statement has little real impact on daily operations, management may waste resources.

What challenges arise internally with Conflicts inconsistencies ?

What can arise from internal Conflicts inconsistencies

A vague or poorly structured mission statement may be interpreted in different ways.

What challenges arise with Ambiguous statements?

What is the problem with an Ambiguous statement?

If a mission statement lacks clarity or uses vague language

What are the challenges of an Obsolete Mission Statement?

What happens with an Obsolete Mission Statement?

The statement may no longer reflect the company’s current aims or values.

Explain Generalized Aim

What is a Generalized Aim?

A broad statement of intent, lacking specific targets and measurable outcomes.

Explain Departmental/Functional Objectives

What are Departmental/Functional Objectives?

Specific goals for each department in a business, supporting the achievement of corporate objectives.

Critically Appraising Mission Statements

What does Critically Appraising Mission Statements involve?

Evaluating the purpose, audience, and effectiveness of mission statements in guiding business actions.

Explain Strategic Alignment

What is Strategic Alignment?

Ensuring that a company's actions match its mission statement, maintaining consistency and direction.

Explain Department Objectives role

What role do Department Objectives play in a business?

Helps the business to achieve its corporate objectives of more dividends for the shareholders

Disney mission statement

What is Disney mission statement?

The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information

Explain Mission statement

What are the Key components of a Mission statement?

A document written by a business which should provide general aims for all the employees to work towards

Explain Mission statement criticism

Why do critics dislike mission statements?

Critics say that mission statements are just a public relations tool

Explain McDonalds Misson statement

What is McDonalds Misson statement?

To be our customers' favourite place and way to eat – with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.

Explain The British School Al Khubairat mission statement

What is The British School Al Khubairat mission statement?

We nurture a genuine passion for learning. Providing the best teachers, leadership and support in a not-for-profit environment

SMART objectives is also

Why should you use SMART objectives?

required when understanding corporate objectives

Use of mission statements

• Focus

• Profitability

• Identity

Uses of mission statements - FOCUS

Helps to focus and involve all employees in the business

A clear mission statement gives employees a shared understanding of what the business stands for, therefore aligning their actions and efforts with the overall goals,resulting in greater teamwork, consistency, and progress towards business objectives.

Uses of mission statements - PROFITABILITY

The mission statement can inspire a sense of purpose and belonging among staff, therefore increasing motivation and encouraging more efficient work practices, resulting in reduced costs and potentially higher profits for the business

Uses of mission statements - IDENTITY

A strong mission statement communicates what makes the business unique, therefore differentiating it from competitors in the eyes of customers and stakeholders, resulting in stronger brand recognition and customer loyalty.

Limitations of mission statements

• can be unrealistic and over-optimistic

• can be a waste of management time and resources

• can lead to conflicts and inconsistencies when not properly written

• can be ambiguous

• can become obsolete as the business develops

Limitations of mission statements - CAN BE UNREALISTIC AND OVER-OPTIMISTIC

A mission statement that sets goals which are not achievable may create false expectations, therefore making it difficult for employees

to take it seriously, resulting in a loss of trust and reduced motivation.

Limitations of mission statements - CAN BE A WASTE OF MANAGEMENT TIME AND RESOURCES

If the mission statement has little real impact on daily operations, therefore management may end up spending time and money on something that adds little value, resulting in inefficiency and missed opportunities to focus on more productive strategies

Limitations of mission statements - CAN LEAD TO CONFLICTS AND INCONSISTENCIES WHEN NOT PROPERLY WRITTEN

A vague or poorly structured mission statement may be interpreted in different ways, therefore causing departments or individuals to pursue conflicting goals, resulting in confusion and a lack of cohesion within the business

Limitations of mission statements - CAN BE AMBIGUOUS

If a mission statement lacks clarity or uses vague language, therefore it may fail to provide meaningful guidance to employees, resulting in uncertainty about the business's direction and priorities.

Limitations of mission statements - CAN BECOME OBSOLETE AS THE BUSINESS DEVELOPS

If the business changes significantly—such as through a merger or product shift—but the mission remains the same, therefore the statement may no longer reflect the company’s current aims or values, resulting in misalignment between strategy and mission, and a disconnect with stakeholders.