AQA - A2 Business Studies Unit 3 - Functional Objectives and Strategies

What needs to be learnt in this section according to the current specification - (Corporate Objectives and Functional objectives) [Note this section is very small, you probably only spent one or two lessons on it yourselves!]

  • Created by: Marina
  • Created on: 30-01-11 19:30

What are Corporate Objectives?

The overall goals of the whole business.

E.g. Growth, Diversification, creating innovative goods, achieving maximum possible profits etc


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What are Functional Objectives?

The Objectives of each Function in the business.

(Functions refer to the departments in the business, such as Marketing, Human Resources etc.)

Example of Functional Objectives: gaining market share (Marketing Department), minimising costs (Finance department).

Each Function should contribute to the Corporate Goal
E.g: The Finance Department's Functional Objective of Minimising Costs would contribute to the Corporate Objective of Maximising Profits.

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The relationship between Functional Objectives and

Functional Objective = Objectives of a Function in the business
Functional Strategy = Plan made to achieve the Objective

e.g. a Functional Objective may be to Minimise Costs, a Functional Strategy would work towards this (e.g find a cheaper supplier)

In the exam, always question whether a strategy is SMART:

There are many variations of what SMART stands for! (many on the internet)

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