• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/35

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

35 Cards in this Set

  • Front
  • Back

Corporate strategic objectives

Targets that a business must reach to achieve overall aim (profit maximisation, growth, increase in market share)





Benefits Corporate Strategic Objectives

Starting point of departmental objectives on which efficient management is based + helps develop a sense of purpose for the entire organisation

CSR

Businesses that take responsibility for the impact of their decisions on their stakeholders (changed through media, millennium goals, global climate concern




Adv: Good publicity leads to USP + consumers willing to pay higher price (ethical)




Dis: Greenwashing + short run cost increase

Conflicts between corporate objectives

Growth vs profit




Short term vs Long term

3 Factors determining corporate objectives

Corporate culture (aims, environment etc.)


Size and legal form of business (first grow/establish)


Public or private sector business

SMART

Business objectives




Specific


Measurable


Achievable


Realistic


Time specific

Tactical/operational objectives

Short to medium-term targets that must be achieved to attain corporate objectives

3 Differences between strategic and tactical objectives

Strategic is set by board members / tactical set by senior managers for each department



Strategic have long-term goals / Tactical more short-term minded




Strategic is difficult to reverse once accepted / tactical is easier to reverse

3 Reasons for changing business objectives

Key senior manager might leave the business leading to a refocus




External competitive and economic environment may alter




Short-term objective of growth in sale may be replaced by long term objective of profit maximisation

Ethics

Moral guidelines that determine decision-making (affect customer loyalty and reputation, however, can be costly)

Ethical code

A document detailing a business' guidelines on behaviour that must be followed by all employees

Environmental audit

Assesses the impact of a business on the environment (positive media coverage > increase in sales)

Social audit

Assesses the impact of a business on society (targets for the future: improve image over time , does not prove social responsibility)

Stakeholder

Anyone with a vested interest in the business. (performance, actions, choices)

Stakeholder concept

The conception that businesses have responsibilities to a wide range of groups

3 Internal stakeholders

Employees


Managers


Shareholders



5 External stakeholders

Creditors


Customers


Government


Competitors


Bank

3 Impacts on objectives

Costs

Labour relations


Time


Managment


Methods of conflict resolution between stakeholders

Arbitration - resolve industrial disputes between workers and managers


Worker participation - improve communication, decision-making and reduce potential conflicts


Profit-sharing scheme - reduce conflict over allocation profits by sharing benefits of success business


Share ownership scheme - reduce conflict between managers and shareholders

PEST analysis - what does it represent

Analytic framework considering external factors affecting business objectives and strategies

PEST analysis - what does it stand for

Political - news laws, new policies, new government


Economic - fiscal policies, exchange rates, unemployment levels


Social - culture, ageing population, immigration


Technological - automation, new advancements

Advantages and Disadvantages PEST analysis

Adv: framework is easy to use + helps identify and exploit new opportunities




Dis: Has to be conducted regularly + access to quality external information often restricted due to costs

Fiscal Policy

Changes in the governments spending and tax rates

Monetary policy

Changes in interest rates

Economic growth

Increases in the level of a country's GDP

Inflation

Rise in the average price level

Unemployment

The number of people in an economy willing and able to work who cannot find employment

Recession

When a countries GDP is decreasing 6 months consecutively

Exchange rates

The value of one currency in terms of another

Cost-push inflation

Rising costs forcing businesses to increase their prices

Demand-pull inflation

Excess demand in economy allows businesses to increase prices

Information technology

Using technology to gather, store, process and communicate information

Computer Aided Design (CAD)

Using computers to design products

Computer Aided Manufacturing (CAM)



Using computers to speed up production process

Internet

The worldwide web of communication