Chapter One - Mission, corporate objectives and strategy

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  • Chapter 1
    • Mission Statement
      • Sets out the business's overall purpose to direct and stimulate the entire organisation
      • Influences on a mission statement
        • - Values of the founders
        • The values of the business's employees
        • The industry of which the business is part
        • Society's views
        • The ownership of the business
    • Corporate objectives and strategic objectives
      • Corporate = Medium to long term goals established to coordinate the business
        • Influences
          • Strategic = Judgements made by senior management that are long term, involve a major commitment of resources and difficult to reverse
            • Tactica = Short term, fewer resources involved, easier to reverse and normally taken by junior management l
          • Internal
            • Poor performance
            • New leader
            • Business culture
            • Business's ownership
          • External
            • State of economy
            • Global prices
            • Technologicalchanges
            • Migration
          • Pressure for short-termism
      • Strategic = Judgements made by senior management that are long term, involve a major commitment of resources and difficult to reverse
        • Tactica = Short term, fewer resources involved, easier to reverse and normally taken by junior management l
    • Functional decisions
      • A judgement taken by managers responsible for one aspect of business's activities
        • Functional
        • Marketing
        • Human Resources
        • Operations
    • SWOT Analysis
      • Strengths
        • high level of cash
        • Strong brand name
        • Good distribution network
        • Highly skilled and loyal staff
      • Weaknesses
        • Large amounts of long term borrowing
        • Under utilised capacity
        • Low net profit margin
        • Lack of new products under development
      • Opportunities
        • Growth in a major market
        • Alliance with a competitor to develop new technology
        • Rising income levels amongst target consumer groups
      • Threats
        • Being taken over by large competitor
        • Change in consumer tastes leafing to a fall in demand
        • New laws increasing the business's costs of production

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