AQA A2 Business Studies Unit 3 Notes

Just all my notes for Unit 3, hope it helps, there is a lot there!

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  • Created on: 18-11-11 17:03
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Unit 3
Functional Objectives and Strategies
Quantifiable targets or goals to be achieved within a given time frame
SMART- Specific, Measurable, Achievable, Realistic, Timed
Provides focus and direction
Sets a benchmark in which to measure performance
Corporate Objectives
The long term goals of a business
Informs decisions making
Provides strategic direction
Guides organisation
Functional Objectives
Medium to long term goals of the business functions within a business, helping it achieve its corporate objectives
Focussed on corporate objectives, they're set in order to help achieve these
Provides strategic direction within each function
Impacts upon other functional objectives
Must be coordinated
Set for each division/department to help guide the divisions/departments actions
Businesses will set a range of functional objectives e.g. minimising costs and increasing market share
Functional Strategies
A detailed plan of how a functional area in a business will go about achieving the functional objectives

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Page 2

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Understanding Financial Objectives
Financial Objectives
The monetary targets a business wants to achieve in a given period of time.
Cash flow targets
These are set to:
Are required to meet the short term objective of survival
To meet day to day expenses
To achieve specific cash flow targets (to ensure all debts are received within 30 days)
A cash flow target may be to have a surplus of cash in order to take advantage of unforeseen opportunities or
unforeseen expenses.…read more

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The Characteristics of the firm
Capital VS labour intensive
Low cost or highly differentiated
Relationship between owners and directors
within a PLC these can be the same or different
What is the power of individual shareholders?
Public or Private sector
A key influence of the overall objective of a business
External influences
Leader or follower
Degree or relative power of competition
Actions and reaction
Degree of Loyalty
changing tastes
Economic Conditions
Stable or unstable
economic growth or decline
Optimistic…read more

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Understanding Operational Objectives
Operational Objectives
The target a firm sets I order to produce goods/service in the most effective way.
Operational Objectives looks at the aims of a business in producing goods and providing services. It will include the
following areas:
Meeting Quality
Cost and volume targets
Efficiency (including time)
Environmental targets
Operational Objectives ­ Quality, cost, and volume:
This refers to capacity utilisation, quality and unit costs.…read more

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Assessing influences ­ Nature Of The Product
A firm will have to take into account the nature of the product:
Target market ­ niche might require specialist operations management such as expertise in that field; mass
might lead to highly automated, capital intensive operations
Regulatory environment ­ legal requirements will heavily impact on operations e.g. waste
Geographical ­ location of industry and the closeness of the available factors of production e.g.…read more

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14th September
Understanding Marketing Objectives
(Pg 106-144)
Successful organisations base their functional objectives and strategies on the organisations overall targets
(corporate objectives)
Planning Process
Planning within the marketing function should follow these stages:
1. Corporate Objectives
2. Marketing objectives
3. Market and marketing analysis
4. Marketing strategies
5. Marketing plans
Possible marketing objectives:
Maintain or inc market share (E.…read more

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External Factors affecting the setting of marketing objectives:
(E.g. the upgrading of cassette
walkman to cd walkman to mp3 player)
Tesco choosing to produce small scale local small stores in Japan and the USA is a good tactic to penetrating a market,
to see how the public react to their business and so they can plan further expansion and development from there.…read more

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Page 113,
Case Study 2
On an overall look at Tesco's progress over 07/08 they have not met most of their aims, however they were very
close to a lot of them. As much as they have not met their aim to increase growth in sales volume by 2.5% their
growth in sales value in the UK had increased by 3.9%. Despite this I would not say that their 2.…read more

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14th September
Understanding Marketing analysis and marketing
Ways of analysing a market
1. Quantitative analysis
2. Qualitative analysis
Methods used in market analysis (quantitative)
1. Moving averages
2. Extrapolation
3. Correlation
Moving Averages
Allow an organisation to calculate a trend scientifically using a series of calculations designed to eliminate
fluctuations within a series of data. The use of moving averages should smooth out the impact of random variations
in data and long-term cyclical factors, and therefore highlight the trend.…read more

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Limitations of quantitative forecasting
Past trends do not always continue into the future
Correlation changes over time. E.G the major influence on sales might change from the price to the amount
spent on advertising
External influences such as competitors' actions, consumers' tastes or stages of the business cycle, can vary
over time.…read more



Thank you

Avromi E

Thanks, Great Notes.


nice Notes. Thanks



sabah mariam


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