Influences on Strategy (AQA A Level Business): Flashcards
Exam code: 7132
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Define mission statement.
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Cards in this collection (27)
Define mission statement.
A mission statement is a brief statement of a business's core purpose, explaining why it exists beyond simply making a profit.
What does a vision statement describe?
A vision statement describes what the business aspires to become in the future. It gives the business a long-term sense of direction to aim towards.
Define values.
Values are the principles and standards of behaviour that guide how a business operates and treats its stakeholders.
True or False?
A mission statement adds value even when the business's behaviour does not reflect it.
False.
A mission that is not genuinely reflected in business behaviour can damage trust and reputation, as stakeholders may see it as insincere.
How can a clear mission improve staff motivation?
Employees who believe in the mission may find their work more meaningful. This links to Herzberg's view that a sense of achievement and purpose is a genuine motivator, not just pay.
Values that are consistently upheld can strengthen a business's reputation and support charging _____ prices.
Values that are consistently upheld can strengthen a business's reputation and support charging premium prices.
Define corporate objectives.
Corporate objectives are the overall, business-wide goals set by senior management that guide the direction of every department.
In the SMART framework used by AQA, what does the A stand for?
In the SMART framework, the A stands for Accountable.
True or False?
Survival is a short-term objective that a business prioritises during difficult trading conditions.
True.
When trading conditions are difficult, survival becomes a short-term priority and is put ahead of profit or growth.
How does a mission differ from corporate objectives?
The mission states why the business exists and who it serves. Corporate objectives translate that purpose into specific, measurable targets for the whole organisation.
Corporate ______ outlines how a firm will achieve its corporate objectives, allocating resources and choosing markets or products.
Corporate strategy outlines how a firm will achieve its corporate objectives, allocating resources and choosing markets or products.
How do functional objectives differ from corporate objectives?
Functional objectives are set by each department to deliver the strategy. They are shorter-term and more detailed than corporate goals.
Objectives create a _______ against which actual results can be measured.
Objectives create a benchmark against which actual results can be measured.
How do objectives help to co-ordinate activity across a business?
When every department works towards the same stated objective, decisions in each area are more likely to support one another rather than conflict.
Define SWOT analysis.
SWOT analysis is an analytical tool used to identify a business's internal strengths and weaknesses and its external opportunities and threats.
How can a SWOT analysis help senior managers?
It helps them understand the current business position and the future changes that may occur. This allows appropriate strategic decisions to be made.
Why does the quality of data affect the usefulness of a SWOT analysis?
Data that is outdated, incomplete or biased can lead to flawed conclusions and ineffective decision-making.
True or False?
A SWOT analysis needs regular updates to stay useful.
True.
Market conditions, technology and consumer preferences change over time, so regular updates and revisions are needed to keep the analysis useful.
Why is a superficial SWOT analysis less useful?
A superficial analysis may overlook important factors or fail to capture the complexity of the business's environment.
Involving employees, customers, suppliers and industry experts in a SWOT analysis brings _____ perspectives, giving a broader understanding of the business.
Involving employees, customers, suppliers and industry experts in a SWOT analysis brings diverse perspectives, giving a broader understanding of the business.
What must be decided before a SWOT analysis is compiled?
The business must decide whether the whole business, a specific product or a new project is to be analysed.
Reviewing financial data and staff or customer feedback identifies real strengths and weaknesses rather than relying on _____.
Reviewing financial data and staff or customer feedback identifies real strengths and weaknesses rather than relying on hunches.
How should a business identify its expected opportunities and threats?
It should carefully review economic, social, technological and competitive trends.
How should SWOT findings be checked before the most important factors are chosen?
The findings should be cross-checked with independent reports.
True or False?
A loyal customer base is an example of an opportunity in a SWOT analysis.
False.
A loyal customer base is a strength, as it is part of what the business is already good at. Opportunities are external options the business may exploit to enjoy further success.
What is a threat in a SWOT analysis?
A threat is a hazard with the potential to damage business performance, such as new competitors gaining market share or products becoming obsolete.
How should a business respond to each part of a completed SWOT analysis?
Strengths should be harnessed and weaknesses eliminated. Opportunities should be seized and threats mitigated.
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