Functional objectives and strategies

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Aims / goals
General statements of what a business intends to achieve. Precise details of those intentions are set out in objectives
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Business unit strategy
How a business attempts to compete successfully in a particular market
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Corporate objectives
Objectives that relate to the business as a whole. Usually set by top management.
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Corporate strategy
Concerned with the overall purpose and scope of the business activities
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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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Functional objectives
Set for each major business function – designed to ensure that the corporate objectives are met
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Mission statement
A statement of the overall purpose of the business
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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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SMART objectives
Objectives that are more likely to be achieved because they are Specific, Measurable, Achievable, Realistic and Timed
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Social responsibility
The way in which a business meets its responsibilities to society as a key external stakeholder
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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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Targets
Similar to objectives. Targets are often set at an individual or team levelSimilar to objectives. Targets are often set at an individual or team level
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Other cards in this set

Card 2

Front

How a business attempts to compete successfully in a particular market

Back

Business unit strategy

Card 3

Front

Objectives that relate to the business as a whole. Usually set by top management.

Back

Preview of the back of card 3

Card 4

Front

Concerned with the overall purpose and scope of the business activities

Back

Preview of the back of card 4

Card 5

Front

A business strategy concerned with aiming to be the lowest-cost producer in an industry. Usually requires exploitation of economies of scale

Back

Preview of the back of card 5
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