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THEME 3 - Coggle Diagram
THEME 3
3.1 Business objectives and strategy
1.1.2 Theories of corporate strategy
1.1.3 SWOT analysis
1.1.4 Impact on external influences
3.1.1 Corporate objectives
Aims
What a business wants to achieve overall
Top of the hierarchy
Broad and unspecific
Created by highest level of management
Long term
Mission statement
A written description for all stakeholders outlining the overall purpose and aims of the business.
The overall reason for a businesses existence
Determines a businesses strategic position
Provides a shared focus and sense of direction
Shared with all stakeholders, internal and external
Hierarchy of business aims and objectives
Aims
Mission statement
Corporate objectives
Corporate strategy
Functional or departmental objectives/ tactics
Tactics
Usually short term
Smaller and more frequent decisions
Plans or decisions taken to achieve the strategic direction of the business
Corporate strategy
The specific plans and route taken to achieve corporate objectives
Medium to long term
Made by senior managers
Require a resource investment, time or money
Shared with internal stakeholders
Once decided on are difficult to reverse
Critical appraisal
Assessing value
Is this outdated?
Who is this aimed at?
Is this easy to access and understand?
Assessing the value of missions statements and corporate aims by looking at the strengths and weaknesses
Corporate objectives
Usually long term
Made by senior managers
Specific goals that a business strives to achieve to meet their overall aims (aim: dominate globally, objective: increase market share)
SMART objectives
Specific: Vague objectives can cause confusion, employees need to have a clear focus
Measurable: A business needs to know if the objective has been achieved or not. Needs to be quantitatively measurable, eg, 'increase 5% sales' not 'sell more products'
Agreed: Everyone involved in achieving the objective need to be on board with it and on the same page, willing to do it
Realistic: Overly ambitious or impossible objectives can demotivate staff
Timely or Time specific: Giving a time limit makes sure the objective is seen as urgent
3.3 Decision making techniques
3.3.2 Investment appraisal
3.3.3 Decision trees
3.3.1 Quantitative sales forecasting
3.3.4 Critical path analysis
3.2 Business Growth
3.2.3 Organic growth
3.2.4 Reasons for staying small
3.2.2 Mergers and takeovers
3.2.1 Growth
3.4 Influences on business decisions
3.4.2 Corporate culture
3.4.3 shareholders vs stakeholders
3.4.1 Corporate influences
3.4.4 business ethics
3.6 Managing change
3.6.2 Key factors in change
3.6.3 Scenario planning
2.6.1 Causes and effects of change
3.5 Assessing competitiveness
3.5.2 Ratio analysis
3.5.3 Human resources
3.5.1 Interpretation of financial statements