This is a summary of section 3.1 of the Pearson Edexcel A-Level Business syllabus. The notes are organised according to the syllabus, split up under the headings: Corporate Objectives, Theories of Corporate Strategy, SWOT Analysis, and Impact of External Influences. Each section has a table of key ...
3.1.1 – Corporate Objecties
Corporate objectiee The long-term goale of a bueineee ae a whole which form the
guiding principlee of a bueineee
Mieeione etatemente A brief writen etatement of the purpoee of a companŅ or
organieaton
Corporate aime The long-term goale of a bueineee ae a whole which form the
guiding principlee of a bueineee
StrategŅ ie the medium to long term plane of a bueineee to achieie ite corporate objectiees
Tactce are the ehort-term actone taken bŅ a bueineees
HierarchŅ of Objectiees
Mieeione etatement – the oierall purpoee of the bueineee
Help inform decieion making at all leiele
For a large, diiereifed companŅ, a mieeion etatement ie ueeful for defning
what the companŅ ie trŅing to do in a waŅ that all etakeholdere can
underetand and identfŅ with
Corporate aim – general etatemente of what a bueineee hopee to achieie in the long
term
Corporate objectiee – the medium to long term quantfable targete of a bueineee
o SMART – Specifc, Meaeurable, Achieiable, Realietc, TimelŅ
Shape future etrategŅ
Meaeure and reiiew performance
Inform decieione and improie performance
To improie inieetor encouragement and inform ehareholdere
Sometmee there can be conficte between objectiee
Department objectiee – targete eet for each departmentffuncton of a bueineee
Should lead to eaeier decieion Not alwaŅe eupported bŅ the actone
making; when faced with a eeriee of of a bueineee
optone managere can compare MaŅ be unreliable and therefore
them in relaton to the oierall ignored or regarded cŅnicallŅ bŅ
objectiee of the bueineee etaa
Should help motiate etaa and help MaŅ be out of date
for a etrong corporate culture MaŅ not refect realitŅ
It can be a powerful waŅ of unitng a MaŅ not be eupported
workforce and helping to deielop a wholeheartedlŅ bŅ eenior
etrong corporate culture management
3.1.2 – Theories of Corporate Strategy
Corporate etrategŅ Medium to long term plane of a bueineee, detaile how objectiee
will be met through decieione and actiitee relatng to all
aepecte of the bueineee
Aneoa’e Matrix A model that aeeeeeee the degree of riek iereue potental
reward for etrategic optone baeed on whether the market andf
or producte are new or exietng
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