4.1 Corporate Aims and Objectives

becuk
Mind Map by , created over 5 years ago

A2 A2 Business Studies (BUSS4) Mind Map on 4.1 Corporate Aims and Objectives, created by becuk on 05/01/2014.

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becuk
Created by becuk over 5 years ago
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4.1 Corporate Aims and Objectives
1 Key Terms
1.1 Mission Statement- This attempts to set out the purpose of an organisation or why it exists.
1.2 Corporate Aims- The LT intentions of the business or what it is trying to achieve
1.3 Corporate Objective- These are the targets that must be achieved if a firm is to meet its stated aims. Must be SMART
1.3.1 Specific, Measurable, Agreed, Realistic, Time specific
1.4 Stakeholder- An individual or group that has interest in the activities or performance of an organisation
2 Firms create mission statements to give stakeholders a clear understanding of the values and purpose of an organisation
3 Corporate aims, objectives and strategies are for whole business and form starting point for functional. (Unit3)
4 Firms have more than one aim and objective.
5 The main corporate objectives
5.1 Survival
5.2 growth
5.3 profit maximisation
5.4 Diversification
5.5 Maximising shareholder value through share price and dividends
5.6 Meet needs of other specifed stakeholder eg suppliers through fair trade
6 Corporate strategies are what a business plans to do in medium to long term.
7 Involve large investments of money, people and effort so difficult to change
8 Examples of corporate strategies
8.1 Cost minimisation in all ways
8.1.1 eg, relocating production abroad
8.2 Bringing new products into the market ahead of competitors by constant innovation.
8.3 Standardising as many parts used in products to maximise economies of scale all factories worldwide. The car industry does this.
9 Number of models and theories of corporate strategy
9.1 Ansoffs Matrix
9.2 Porters Generic Strategies
10 businesses have to recognise their responsibilities to different stakeholders and take into account their views on the activities of the business
11 conflict can arise between decisions made about aims, objectives and strategies and various stakeholders
11.1 Trying to resolve can be major challenge

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