Business topic test

• What is an aim


  The long term overall vision
• What is a mission statement?


  Aim and core values in context in inspirational form which inspires the corporate objective and functional objectives
• What is a corporate objective?

  specific performance goals
• What is a functional objective?

  Day to day goals of departments - aligned across all departments for shared goal
• What does SMART stand for?

  Specific, Measurable, Agreed, Realistic, Time-bound
• What must businesses critically assess

  Their aim and mission statement
• What are likely to change over time

  Aim and mission statement
• What must be considered when changing the aim or mission statement?

  Whether short/medium term strategies support the aim and mission statement, SMART, stakeholders
• Revising what feature is natural?

  The aim
• What can revising your aim involve

  a variety of Stakeholders, acknowledging new opportunities and threats and sharing refreshed priorities (=positive publicity)
• what do long term decisions affect?

  long term mission and vision over a long time period
• what do short term decisions affect?

  objectives and tactics over next few years
• what type of decisions do business mainly focus on?

  short term decisions
• what kind of decisions will a business focusing on the short term make?

  lower r&d investment, higher returns to shareholders, rapid external>organic growth, lower investment in human resources (e.g. training), prioritise short term contracts
• what does short termism lead to?

  loss of profit, loss of competitive advantage, regular financial reports = less time to consider long term, higher costs due to short term contracts with suppliers (no bulk buying discount), lower productivity and willingness of workers
• what does long termism lead to?

  more investment in r&d, lower emphasis on frequent financial reporting, investment into recruitment/training/retention of staff, lasting relationships with suppliers
• what is evidence-based decision-making?

  facts based decision-making
• First step of evidence-based decisions

  identify objectives
• Second step of evidence-based decisions

  gather data and ideas
• Third step of evidence-based decisions

  analyse
• Fourth step of evidence-based decisions

  make decision
• Fifth step of evidence-based decisions

  implement
• Sixth step of evidence-based decisions

  monitor and review then restart the process
• What is subjective decision-making?

  guided by personal opinions and experience
• what type of decision-making is riskier?

  subjective decision-making
• what are stakeholders?

  people affected by the actions of a business - internal & external
• what problems are there with having so many stakeholders?

  they all have different objectives (e.g. employees-earn a living, job security)
• What will taking the needs and interests of stakeholders ensure

  long term success
• what is the stakeholder approach?

  sharing the benefits and drawbacks equally amongst them (recognise social impacts on them due to media), lower profits - solutions = high cost (e.g. paying for workers to earn a living - living wage)
• what does meeting the needs of shareholders lead to?

  higher profits = higher dividends = higher share price
• what is the problem with different stakeholders having different objectives?

  there may be conflict
• what are business ethics?

  rights and wrongs of making a decision - beyond legal requirements
• what do some business have to inform decision-making?

  an ethical code of practice
• what may an ethical code of practice consider?

  environment, animals, fair wage (living wage), less corruption, not trading with questionable suppliers
• What may there be between profit and ethics?

  a trade-off
• how may ethics be linked to pay?

  rewards, gender pay gap, minimum wage, executive bonuses
• What does CSR stand for?

  Corporate Social Responsibility
• what is corporate social responsibility?

  conducting the business ethically and balance the interests of stakeholders
• CSR benefits

  increase brand image and reputation, attractive to stakeholders (adds value = inc profit), increased employee motivation and productivity, better job candidates