Mission, corporate objectives + strategy

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Define a mission
An organisation's aims or LT intentions, its ultimate purpose. "To connect the world's professionals to make them more productive + successful" - Linkedin
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Why is a mission important?
Communicate the purpose + values of an organisation to its stockholders. Inform the strategy adopted by an organisation. Enable measurable goals + objectives to be identified.
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Define a corporate objective
Goals of the whole organisation rather than of different elements of the organisation. Set to co-ordinate the activities of, give sense of direction to, + guide the actions of the whole organisation. Dictated by mission or comporte aims.
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States some internal and external influences on corporate objectives
Internal: Ownership, ethics, culture, resource constraints + relative power of stakeholders. External: pressures for short-termism, PESTLE.
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State some long term and short term influences on objectives + decisions
Financial crisis or recession = focus on ST survival rather than growth. May have a LT objective of improving profitability but in the ST this many be sacrificed in order to try eliminate the competitor. Neg publicity or environ disaster (BP + Sams).
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Define a strategy
Med to LT plan through which an organisation aims to attain its objectives; they usually change infrequently.
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Define corporate strategies
General approaches that a company uses + the policies + plans it develops in order to achieve corporate aims + objectives. Usually translated into more detailed functional strategies, planned at board of director level but impact functional levels.
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Define tactics
The means by which a strategy is carried out; a range of different tactics may be used as part of a single strategy. They are decided by functional heads of departments, are ST + change frequently in relation to PESTLE + the market.
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State the corporate planning process stages
1) Mission Statement. 2) Objectives. To produce a strategy collect info about 3) Internal E + External E 5) SWOT analysis. Use this info collected from the above for: 5) Strategic choice. 6) Strategic implementation. 7) Control + eval.
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What is strategic decision making vs function decision making
SDM concerns the general direction + overall policy of the organisation, LT decisions + require detailed consideration, has high risk. FDM tend to be ST + is concerned with specific function areas rather than overall policy, less risky.
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What is SWOT analysis
A technique that allows an organisation to assess its overall position. Assesses the internal + external influences on corporate strategies. Uses an internal audit to assess S + W. External audit to assess its O + T.
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Difference between internal + external audit within SWOT analysis
IA=II, which involves looking at current resources, how well they are managed + how well they match up to the demands of the market + competition. EA=EI, involves looking at the possibilities for development in diff directions in the future (PESTLE).
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State some of the values of SWOT analysis
Provides a structured approach to assessing the internal + external influences on performance. Good basis on which to make decisions. Highlight current + potential change. Able to analyse how to counter T's, seize O's, build on S's + overcome W's.
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Other cards in this set

Card 2

Front

Why is a mission important?

Back

Communicate the purpose + values of an organisation to its stockholders. Inform the strategy adopted by an organisation. Enable measurable goals + objectives to be identified.

Card 3

Front

Define a corporate objective

Back

Preview of the front of card 3

Card 4

Front

States some internal and external influences on corporate objectives

Back

Preview of the front of card 4

Card 5

Front

State some long term and short term influences on objectives + decisions

Back

Preview of the front of card 5
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