3.7

What are the 4 functional areas?

Marketing

HR

Financial

Operations

What is a mission statement?

Declares the organisations purpose , aims, policy and values

What are corporate objectives?

Sets out what you need to acheive long term goals

What order leads to the mission statement?

Corporate strategies → corporate objectives → mission statement

What are external influences of mission statements?

PESTLE

Society views

What are internal influences for mission statements?

Business ownership

Short-termism

Internal environment e.g: new leader, business culture

What is short-termism?

Where a business prioritises short term rather than long term performance

What does short-termism emphasise?

Share price

Revenue growth

Growth /operating profit

What is strategy?

Medium to long term plan that details now the company intents to achieve its corporate objectives

What is tactic?

Meeting short term targets

Requires fewer recourses to implement

Maybe easy to reverse

What is at the expense of short-termism?

Market share

Quality

Innovation

Brand reputation

Employee skills

Social responsibility

What is swot analysis?

The method of analysing current situation examining strength, weaknesses, opportunities and threats of the business

What are the internal parts of SWOT?

strengths

weaknesses

What are the external parts of SWOT?

opportunities, threats

Why is SWOT analysis used?

It can be used to inform decision making and set corporate objective and strategies

What are the internal influences for finance?

Current financial position

use of budget

cash flow

financial expertise

What are the external influences for finance?

Interest rates

exchange rates

current market price

What are the internal influences for marketing?

level of creativity in staff

data on success of existing campaigns

What are the external influences for marketing?

products launched

market conditions

competition advertising

What are the internal influences for HR?

current staff abilities

abilities of managers

What are the external influences for HR?

current employment rates

unemployment rates

current rates

What are the internal influences for operations?

existing expertise and capacity

quality assurance / control

existing assets and availability

What are the external influences for operations?

customer wants and needs

rival business’

market conditions

market for new innovation