What are the five diffferent types of business objectives and arrange them in a hierachy.
Long-term, not detailed and just gives us a general idea of what the business is about.
More specific, long-term but can be confusing as they are different than MS.
This is a long term approach and is what the business plans to achieve its aims.
Consists of short term objectives set in order to achieve the business' strategic objectives and is likely about the day to day running of the business.
What are corporate objectives and what are functional objectives?
Corporate objectives are set by management and directors of the company as a whole. These might include profit, revenue, dividents for shareholders, operating costs and carbon emissions.
Functional objectives are also known as department objectives and are for medium-large companies. They are organized into departments and each dept specializes in a certain task. They are usually all given in order for them to reach their corporate objectives.
Why do business objectives change? (Think internal/external factors)
Why is there always a potential for conflict?
Internal factors - lack of finance avaliable, poor communication conflict of interests, an industrial dispute, a change of circumstances and the age of the business.
External factors - change in the external environment. These could be economic, competition, legal changes.
There are many potentials for conflict as it is impossible to satisfy all of the stakeholders all of the time. Therefore you can either...
Satisfy all of the stakeholders some of the time.
Satisfy some of the stakeholders all of the time.
What is SWOT analysis?
It is a technique that a firm uses to assess the internal and external factors realted to business activity. Internal factors include a motorvated workforce, good financial resources and strong management. External factors include new markets, competition and a changing market. MUST BE OBJECTIVE (NO PERSONAL OPINION)
Strengths (Internal) Oppertunities (External)
Weaknesses (Internal) Threats (External)
- Can be carried out by a firm or department.
- Looks at the future.
- Assess how effective the managment are.
- Develop and adjust strategies/tactics.