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 |