The long term and ongoing purpose of the company, i.e why it exists. Missions are generally qualitative and cannot be achieved through numbers.
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What are stakeholders?
Someone who has a direct effect or interest to a business and will be affected by their decisions.
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Name 3 examples of stakeholders.
Staff, Customers, Suppliers.
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What is the mission statement?
This is how a company communicates its mission to its stakeholders.
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What are corporate aims?
This shows how a firm wishes to develop. They're set out by a company's director as a guidance for businesses to create their corporate and functional objectives.
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What are some examples of corporate aims?
Profit maximisation, diversification.
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What are the two types of business objectives?
Corporate and departmental/functional.
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What do corporate objectives do?
Lay out the company wide goals for a firm.
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What do departmental objectives do?
These focus on particular departments or areas of the business.
Every member of the organisation understands what they are striving towards. Makes decision making easier. Give more responsibility to workforce and increase motivation, belonging and direction.
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What are the drawbacks of a mission statement?
If unrealistic it may be ignored, Company's should follow it if they make a statement regarding staff/other stakeholders, Only effective if everyone supports them.
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How are employees interested in their business?
Regular income, Job security, Safe place of work, Opportunities of promotion.
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How are customers interested in a business?
Fair prices and good products, Good customer service and after sale service.
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How are shareholders interested in their business?
Increase in dividends, Rising share prices.
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How are creditors interested in a business?
Repaying them on time, Returns on any investments.
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How are suppliers interested in a business?
Secure a contract to businesses. Fair prices.
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How are local communities interested in businesses?
Local employment, Low levels of pollution, Business gives back to the local community.
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Other cards in this set
Card 2
Front
What are stakeholders?
Back
Someone who has a direct effect or interest to a business and will be affected by their decisions.
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