3.1-Business objectives & strategy

• Mission statement


  Sets out the business's beliefs and values
• Mission statement


  1. Creates corporate aims which are the businesses long term

  2. Corporate aims allow the business to work towards its overall mission
• Corporate aims


  1. Used to create corporate objectives

  2. Corporate objectives are the specific tasks and activities a business must accomplish in order to satisfy its corporate aims
• Corporate objectives


  Can be broken down further into functional, team and individual objectives
• Mission statement


  Aims to set out the organisation's purpose
• Influences on a business' mission statement

  • Culture, ethos and values
  • Stakeholders, shareholders, community and employees
• Strategy

  Long term plans which require many resources and can be difficult to reverse once implemented
• Tactics

  Short-term plans which often require few resources and can be stopped or reversed
• Business mission

  Informs the choice of corporate objectives as corporate objectives will be designed to meet the overall mission
• Strategic decisions made by businesses


  Influence departmental or functional decision making as every function within a business must support the overall organisation
• SWOT Analysis

  • Explores a business's internal strengths and weaknesses and the external opportunities and threats facing the business
• Internal strengths examples

  • Trusted, reputable brand
• Internal weaknesses examples

  • Cash flow concerns, low profit margins
• External opportunities


  • Expanding market nationally or internationally
• External threats


  • Declining market, increased competition
• PESTLE factors

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental
• Bargaining power of suppliers

  Relates to how much power suppliers in the market have. If suppliers have more power, the market is less attractive as suppliers can charge higher prices.
• Bargaining power of buyers


  Relates to how much power buyers in the market have. If buyers have more power, the market can be less attractive as buyers can demand a lower price.
• Barriers to entry


  Relates to how easy it is for a business to enter a market
• Threat of substitutes (barrier to entr)

  Relates to whether customers are likely to buy an alternative product
• Rivalry between existing competitors

  Refers to the amount of competition within the market
• Advantages of Porter's Five Forces

  • Allows businesses to understand the competitiveness of a market and make decisions about their own competitiveness
  • Allows new entrants to consider how profitable a market may be
  • Identifies strengths, weaknesses, opportunities and threats
• porters five forces allows you to analyse the competitiveness of a business environment