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Functional objectives and strategies
Key term Definition
Corporate A quantifiable statement of a business's goals which should include
objectives measurable targets.
Functional A quantifiable statement of a department's goals which should enable it to
objectives contribute to the achievement of the business objective.
Functional Strategy…

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Dividend yield A measure of the return received on an investment, expressed as a
percentage of the current market price of the share.
Dividends per The number of pence per share received by shareholders.
Executive directors A member of the board of directors who also holds a position of…

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Satisficing Aiming to achieve a satisfactory level of profit.
Shareholder ratios Ratios that help measure the value of the return received by shareholders.
Shareholders' The financial rewards to a shareholder in return for their investment this can
returns include dividends paid and increase share value.
Sources of finance The range…

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Operational strategies
Key term Definition
Average cost Total cost divided by the number of units produced to give cost per item.
Benchmarking A management tool which aims to increase performance by identifying,
investigating and adopting aspects of best practice from other firms.
Business analysis The process of investigating the economic…

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Multisite locations A business that operates from more than one location.
Noncritical Those activities with float time, i.e. if it takes four weeks to complete, there
activities may be six weeks between the EST and LFT.
Offshoring The relocation of a business process done in one country to the same…

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Core workers Fulltime, permanent employees, with businessspecific skills and
knowledge, performing tasks key to the success of the business, often
rewarded with high salaries and excellent working conditions.
Decentralisation Where the authority for decisionmaking is delegated to subordinates in the
organisational structure.
Delayering Removing levels in the organisational structure.

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Corporate aims and objectives
Key Term Definition
Corporate aims Longterm targets that will enable the business to fulfil its mission.
Corporate strategy A plan based on the corporate aims and objectives which defines the overall
scope and direction of the business by identifying its choice…

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Exchange rate A fall in the value of a country's currency in terms of other currencies. This
depreciation raises prices of imports but may allow an exporter to reduce prices.
Expansion fiscal Increases in government spending greater than increases in taxes, e.g.
policy budget deficit. This increases total demand in…

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Technological Changes in the range, applications and efficiency of technology available.
Unemployment The number of people willing and able to work but unable to find
VoIP Voice over Internet Protocol ­ making telephone calls via the internet.

Managing change
Key term Definition
Autocratic Leaders take decisions on their…

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Merger An agreement by shareholders and managers of two businesses to bring
both firms together under a common board of directors with shareholders in
both businesses owning shares in the newly merged business.
Organisational The values, attitudes and beliefs of the people working in an organisation
culture that control the…


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