Unit 3

Revision cards for Unit 3.

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  • Created by: Zoe
  • Created on: 03-03-11 09:31

Functional Objecives and Strategies

  • Objectives - Things that the business wants to achieve.
  • Corporate - General and refer to the business as a whole.
  • Functional - The objectives of each department.

Corporate Objectives                                     Functional Objectives

1) Increase Profits                                          - Minimise costs

                                                                       - Increase sales

2)Increase customer satisfaction                    - Reduce faulty products

                                                                       - Reduce customer complaints

3)Improve staff motivation                              - Reduce the staff turnover

                                                                      - Increase wage or salary rates

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Objectives and strategies

  • Strategy - A plan of action developed to achieve an objective.
  • Strategic Gap - When the results from the strategy that has been devloped aren't expected to achieve that stated objective.

Objectives should be...






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Financial stategies

  • Financial objectives - Financial goals that a business wants to achieve.

Influences on financial objectives

Internal                                                    External

- The overall objective                             - The avaiablity of finance

- The status of the business                    - Competitors

- Employees                                            - The economy

                                                               - Shareholders

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Balance sheet


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The operating cycle


Factors affecting how much cash needed.

High sales volumes, More credit, Inflation, expanding.

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