Objecties and Strategies

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Objectives and Strategies

Objectives-Corporate objecties are the company-wide goals that need to be achieved to keep the business on track to meet its aims

Strategy-Corporate strategy is a medium to long plan for meeting the objectives

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How are they determined?

The bosses personality (how risky are they?)

The industries pace of growth

The number of firms within the industry

The level of competition within the industry

Shareholder on the firm

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Types of Objectives

Maximising shareholder value

Growth

Diversification

Survival

Profit Maximisation (often the main goal)

Image and Social responsibility

Maximising sales revenue

Managerial objectives

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Strategies

Corporate Strategy- This deals with the major issues such as what industry or industries the business should compete in

Business Unit Strategy- How the business will compete in the industry selected by corporate strategy.

Selecting a position in the marketplace to distinguish the business from its competitors

Departmental Strategy- Each department will develop a strategy to enable it to contribute to the firm achieving the objectives

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Strategy Continued...

Internal Factors-
HR
Finance
Operations

External Factors- Social
Competitive
Legal
Enironmental
Eco
Political
Technology

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Porter's Five Forces

1. Intensity of Rivalry

2. Threat of New Entrants

3. Threat of New Substitutes

4. Bargaining power with Suppliers

5. Bargaining with Customers

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