Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Functional objectives and strategies
Using objectives and strategies
Financial strategies and accounts
Understanding financial objectives
Using financial data to measure and assess performance
Interpreting published accounts
Selecting financial strategies
Making investment decisions
Marketing strategies
Understanding marketing objectives
Analyzing markets and marketing
Selecting marketing strategies
Developing and implementing marketing plans
Operational strategies
Understanding operational objectives
Operational strategies: scale and resource mix
Operational strategies: innovation
Operational strategies: location
Operational strategies: lean production
Human resource strategies
Understanding HR objectives and strategies
Developing and implementing workforce plans
Competitive organizational…read more

Page 3

Preview of page 3

Here's a taster:

Using objectives and strategies
Objectives ­ goals or targets that must be achieved
To be effective objectives should be:
S pecific
M easurable
A greed
R ealistic
T ime bound
Corporate objectives ­ the overall goals of the business to be
achieved in the longterm
What is the use of corporate objectives?
To enable a business to achieve its aims or mission
To coordinate business activity
To provide a sense of direction for the business
To guide the actions of employees for the business
Examples…read more

Page 4

Preview of page 4

Here's a taster:

The relationship between corporate and functional
Corporate objectives vary depending on the size of the business
and the legal structure. Corporate objectives and their contributing
functional objectives may include the following
Survival. Functional objectives to achieve the businesses
survival may be appropriate levels of stock and required
number of experienced employees.
Profit maximization. Functional objectives that will help a
business to maximize its profits may include effective
marketing in order to increase sales.
Growth maximization.…read more

Page 5

Preview of page 5

Here's a taster:

Minimize costs
Financial strategy
Introduce zero budgeting
Understanding financial objectives
Financial objectives ­ the specific, focused targets of the
finance and accounting function or department within an
Types of financial objectives
1. Cashflow targets
Example: Spreading its costs more evenly. A business may
pay its utility bills, such as gas and electricity, on a monthly basis
rather than quarterly to avoid cash flow difficulties
2.…read more

Page 6

Preview of page 6

Here's a taster:

Shareholder returns
A business must satisfy the needs of its owners/shareholders and
therefore have objectives to meet shareholders needs.
Example: Increasing the share price. The share price reflects
the value of the business so if the business retains its profits and
grows successfully, the share price should increase.
Influences on financial objectives
Internal factors that affect financial objectives are those within a
business such as its workforce, resources and financial position.…read more

Page 7

Preview of page 7

Here's a taster:

Using financial data to measure and assess
The key financial documents kept by firms are:
Balance sheet
Income statement
Users Purpose
Internal users Managers use information to record
Managers financial activities, plan action, control
use of resources and analyze and
evaluate the effectiveness of decisions
taken.…read more

Page 8

Preview of page 8

Here's a taster:

Analyzing balance sheets
A balance sheet looks at the accumulated wealth of a
business and can be used to assess its overall worth.
The details provided in the balance sheet can help
stakeholders to assess the financial strength of a business.…read more

Page 9

Preview of page 9

Here's a taster:

What causes working capital difficulties?
Failure to control inventory levels
Poor control of trade receivables/payables
Cash flow problems
Poor internal planning and coordination
How can you solve working capital problems?
Inventory control: ideally inventory should be maintained at a low level
as this means that less money is tied up in stock
Receivables control: receivables should be kept to a minimum as they
mean a delay in receiving cash. However, the offer of credit can increase
sales.…read more

Page 10

Preview of page 10

Here's a taster:

What is profit quality?
A measure of whether profit is sustainable in the long run
High quality profit is profit that will continue
Low quality profit arises from exceptional or extraordinary circumstances
that are unlikely to continue
What is profit utilization?
The way in which a business uses its profit
It can be used in two ways: dividends paid to shareholders and retained
profits.…read more


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »