Aims And Objectives

Question 1

What is a mission statement

Answer 1

A mission statement- a statement that defines the organisations business, its objectives and why the business exists

Question 2

What is a business aim

Answer 2

Business aim- the long term goal of the business

Eg: expand into many locations

Question 3

What is a strategic objective

Answer 3

Strategic objective - smaller observable goals that a business uses to reach its aim

Eg: to achieve growth of 3.5 percent a year

Question 4

What is a tactical objective

Answer 4

Short term day - to day actions to achieve what’s laid in in the strategic plan

Question 5

What are the advantages of a business plan

Answer 5

Give a business a sense of direction
Encourages co ordination

communication between different departments and stakeholders in the business

Able to consider constraints faced by the business

Able to raise finance from banks for start ups/expansion

Question 6

What is a business plan

Answer 6

A formal written document that explains in detail how a business is going to achieve its objectives

Question 7

What are some things included in a business plan

Answer 7

The objectives of the business plan
How much funding you neee
Risk analysis
Business description and brief history

Question 8

What are the disadvantages of a business plan

Answer 8

Opportunity cost of time spent gathering data , analysis and evaluation
Business plans are always changing- ongoing opportunity costs- not bad for big company’s but hard for small businesses

A plan may be too rigid and leave no room for individual employee creativity -demotivating those who carry it oit

Question 9

What is a hierarchy of objectives

Answer 9

A tool used to analyse and communicate objectives (includes mission statement)

Question 10

What is a mission statement

Answer 10

General idea of what the business exists to do

Question 11

What are the advantages of a business statement

Answer 11

• Provides direction
• Helps resolve conflict
• Framework for decision making

Question 12

What are the disadvantages of a mission statement

Answer 12

• Can be ambiguous and worthless
• Could be wate of time
• May be unrealistic

Question 13

What are SMART objectives

Answer 13

Specific- understandable by everyone

Measurable- objective feature a type of objective so whether it’s a success or not can be confirmed

Agreed-objectives should be agreed by different departments so it’s more like to be achieved

Realistic- being realistic to avoid employees becoming demotivated

Time-bound - time constraint adds measurement and focuses employees
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Question 14

What are some examples of internal constraints that may limit a businesses ability to achieve its objectives

Answer 14

Lack of finance to meet objectives

Poor communication of objectives within business

Conflict of interests between departments

Industrial dispute within workforce (eg trade unions)

Question 15

What are some examples of external constraints that may limit a businesses ability to achieve its objectives

Answer 15

Changes in the law which affect the operation of the business

State of the economy

Behaviour of competitors

Opinions and behaviours of the external stakeholders

Question 16

What the good things about corporate objectives for a business and what do they do for the business

Answer 16

Mission statement already gives indication of corporate objectives

Gives a sense of direction and helps define culture in which the business operates and is organised

The corporate culture is linked to corporate objectives

Question 17

What are the good things around social objectives and what do they do for the business

Answer 17

Being a positive social force is seen as being an effective marketing tool eg by being green or offering sponsorship to local football team

Social objectives like, Reducing waste can be good socially and save money