Business Studies: Strategies for Success- Definitions

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  • Created by: Olivia
  • Created on: 07-12-12 14:48
Objectives
Statements of specific outcomes that are to be achieved
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Functional Objectives
These are objectives set for each major business function (eg. HR) and are designed to ensure that the corporate objectives are achieved.
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Corporate Objectives:
A company’s (as a whole) goals that are laid out mainly by the directors. Goals are often long-term and reasons for achieving these are made clear to all stakeholders.
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Strategy:
Different methods to reach objectives.
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HRM
The management in a business that looks after the employees and their needs; they aim to make the best use of all employees and to achieve corporate goals.
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HR Objectives
Targets that the HRM hopes to achieve by implementing HR strategies, so that the business can achieve its corporate objective.
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Soft HRM
Treats employees as the most important resource in the business and a source of competitive advantage; they are treated as individuals and their needs are planned accordingly.
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Hard HRM
Treats employees as a resource of the business (like machinery.) Strong link with the corporate business planning.
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Workforce Planning
Enables decisions to be taken about how to achieve the required workforce as and when it is needed.
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Workforce Plans
Details of how a business will implement its HR management policies.
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Ansoff Matrix
A marketing planning tool that helps a business determine its product and market growth strategy. It suggests that suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
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Shareholder Value
Where shareholders earn a return from their investment which is greater than their required rate of return.
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Cost Leadership
A business strategy concerned with aiming to be the lowest-cost producer in an industry. Usually requires exploitation of economies of scale
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SWOT Analysis
Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider
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Acid-Test ratio
A liquidity ratio that looks at whether a business can pay for current liabilities out of cash and near-cash assets (it ignores the value of stocks)
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Assets
Amounts owned by, or owed to a business
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Asset Turnover
A ratio that calculates the relationship between revenues and the total assets employed in a business.
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ARR
Average Rate of Return. A measure of the total accounting return from an investment project
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Capital Expenditure
Expenditure on assets which are intended to be kept in the business (e.g. IT systems, machinery) rather than sold or turned into products
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Creditor Days
A ratio that estimates the average period (in days) taken to settle amounts owed by a business to suppliers
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Current Ratios
A simple and popular measure of liquidity that assess the ability of current assets (e.g. cash, stocks) to finance current liabilities (e.g. trade creditors)
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Other cards in this set

Card 2

Front

These are objectives set for each major business function (eg. HR) and are designed to ensure that the corporate objectives are achieved.

Back

Functional Objectives

Card 3

Front

A company’s (as a whole) goals that are laid out mainly by the directors. Goals are often long-term and reasons for achieving these are made clear to all stakeholders.

Back

Preview of the back of card 3

Card 4

Front

Different methods to reach objectives.

Back

Preview of the back of card 4

Card 5

Front

The management in a business that looks after the employees and their needs; they aim to make the best use of all employees and to achieve corporate goals.

Back

Preview of the back of card 5
View more cards

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