Chapter 1: Using Objectives and Strategies

HideShow resource information
View mindmap
  • Using Objectives and Strategies
    • Corporate objectives
      • Designed to enable business to meet its mission or aims
      • used to co-ordinate business activites
      • govern setting of functional objectives
    • Functional objectives
      • set for each division
      • designed to ensure corporate objectives are met
      • meant to co-ordinate business activities between departments
    • Strategies
      • medium to long term plans
      • allow business to achieve its objectives
      • should not be created until corporate and functional objectives have been set
    • SMART objectives
      • S- specific
        • clearly and easily defined
      • M- measureable
        • quantifiable
      • A-agreed
        • managers and subordinates are involved in setting of objectives
      • R-realistic
        • achievable and not in conflict with other objectives
      • T-time bound
        • based on explicit timescale
    • Relationship between corporate objectives and functional objectives
      • Survival
        • appropriate levels of stock
        • minimum level of sales and sales revenue
        • required number of well trained/experienced staff
      • Profit Maximisation
        • effective marketing in order to increase sales
        • improving profit margin by minimising costs
        • effective capacity utilisation
        • reducing staff absenteeism / turnover
      • Growth Maximisation
        • increasing market share
        • retaining profit in order to finance growth
        • increasing capacity by expanding number of sites
        • recruiting more staff and improving training
      • Diversification
        • development of niche markets
        • raising additional finance via appropriate sources
        • achieving economies of scale
        • ensuring effective communication between business funcitons

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Objectives and Strategies resources »