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Questions and Answers
What does the 'S' in SMART stand for?
What does the 'S' in SMART stand for?
Which of the following attributes describes the 'M' in SMART?
Which of the following attributes describes the 'M' in SMART?
What is a key characteristic of an Achievable objective in SMART?
What is a key characteristic of an Achievable objective in SMART?
In the hierarchy of objectives, where do corporate objectives generally reside?
In the hierarchy of objectives, where do corporate objectives generally reside?
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Which key area relates to customer satisfaction and product range among corporate objectives?
Which key area relates to customer satisfaction and product range among corporate objectives?
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What does the 'T' in SMART objectives signify?
What does the 'T' in SMART objectives signify?
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What is an example of a functional objective in supporting corporate objectives?
What is an example of a functional objective in supporting corporate objectives?
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Which of the following is NOT typically considered a corporate objective?
Which of the following is NOT typically considered a corporate objective?
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Which of the following is considered a potential business weakness?
Which of the following is considered a potential business weakness?
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What represents a business opportunity in today's markets?
What represents a business opportunity in today's markets?
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Which of the following would be classified as a threat to a business?
Which of the following would be classified as a threat to a business?
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Which potential weakness can directly affect a business's competitive edge?
Which potential weakness can directly affect a business's competitive edge?
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Which of the following could be a source of business opportunity?
Which of the following could be a source of business opportunity?
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What is an example of a weakness related to a company's workforce?
What is an example of a weakness related to a company's workforce?
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What is the main concern of short-termism in business management?
What is the main concern of short-termism in business management?
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Which factor does NOT typically contribute to short-termism in businesses?
Which factor does NOT typically contribute to short-termism in businesses?
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How does competitive pressure influence business strategy?
How does competitive pressure influence business strategy?
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What impact does social and technological change have on decision-making in businesses?
What impact does social and technological change have on decision-making in businesses?
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What does not reflect the concerns surrounding the political and legal environment?
What does not reflect the concerns surrounding the political and legal environment?
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What is a consequence of external investor pressure for businesses?
What is a consequence of external investor pressure for businesses?
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Which functional objective best supports the corporate objective of increasing sales?
Which functional objective best supports the corporate objective of increasing sales?
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What internal influence focuses on the values and beliefs that guide decision-making in a business?
What internal influence focuses on the values and beliefs that guide decision-making in a business?
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Which of the following influences is considered an external factor affecting corporate objectives?
Which of the following influences is considered an external factor affecting corporate objectives?
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To improve customer satisfaction, which functional objective should be targeted?
To improve customer satisfaction, which functional objective should be targeted?
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What internal influence relates to the ability of business owners to shape goals?
What internal influence relates to the ability of business owners to shape goals?
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Which of the following best describes an operational functional objective?
Which of the following best describes an operational functional objective?
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Which of the following is NOT an internal influence on corporate objectives?
Which of the following is NOT an internal influence on corporate objectives?
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What is the goal of reducing the average payment time for invoices in finance?
What is the goal of reducing the average payment time for invoices in finance?
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What is a primary characteristic of strategic decisions?
What is a primary characteristic of strategic decisions?
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Which of the following is an example of a tactical decision?
Which of the following is an example of a tactical decision?
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How does short-termism affect business management?
How does short-termism affect business management?
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What is the primary goal of corporate objectives?
What is the primary goal of corporate objectives?
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Which of the following statements best describes tactics?
Which of the following statements best describes tactics?
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In SWOT analysis, which aspects are primarily analyzed?
In SWOT analysis, which aspects are primarily analyzed?
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What differentiates strategic decisions from tactical decisions?
What differentiates strategic decisions from tactical decisions?
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Which of the following best exemplifies a strategic decision?
Which of the following best exemplifies a strategic decision?
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Study Notes
SMART Objectives
- Specific: Clearly define what is to be achieved.
- Measurable: Ensure objectives can be quantified to assess achievement.
- Achievable: Set realistic goals based on resources and circumstances.
- Relevant: Align objectives with the responsibilities of those achieving them.
- Time Bound: Establish a practical timeframe for achieving objectives.
Hierarchy of Objectives
- Corporate objectives are at the top, guiding more specific tactical and operational objectives.
- Key areas impacted by corporate objectives include market, innovation, productivity, resource management, profitability, management, employee relations, and public responsibility.
Corporate and Functional Objectives
- Corporate objectives drive the direction of a business. Examples include:
- Market share and customer satisfaction.
- Introduction of new products.
- Optimizing resource use.
- Financial performance metrics.
- Employee development and relations.
- Legal compliance and ethical behavior.
- Functional objectives support corporate goals, with examples:
- Marketing aims to launch five new products to increase sales.
- Operations targets a 10% increase in factory productivity to cut costs.
- Finance aims to reduce customer payment time to boost cash flow.
- People management targets high customer service levels.
Influences on Corporate Objectives
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Internal Influences:
- Business Ownership: Owner goals impact objectives.
- Profit Orientation: Focus on profits versus non-profit motives influences objectives.
- Ethical Stance: Ethical considerations shape decision-making.
- Organizational Culture: Structure and culture affect how objectives are set.
- Leadership: Leadership strength influences objectives and decisions.
- Resources: Market position and available resources inform realistic objectives.
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External Influences:
- Short-termism: Pressure for immediate results can undermine long-term strategy.
- Economic Environment: Economic indicators impact objective-setting.
- Political/Legal Environment: Uncertainty in laws can affect corporate goals.
- Competitor Actions: Strategy and actions of competitors shape achievable goals.
- Social and Technological Change: Rapid changes can complicate decision-making and goal-setting.
Short-termism
- Focus on immediate performance often driven by:
- Investor pressure for short-term financial results.
- Management incentives linked to short-term achievements.
- Frequent changes in management or strategy.
Strategy vs. Tactics
- Strategy: Long-term plans set by senior management to achieve objectives.
- Tactics: Short-term, routine plans delegated to junior management to support specific targets.
Examples of Strategic and Tactical Decisions
- Strategic: Entering new markets, pursuing external growth, adopting major strategies like cost minimization.
- Tactical: Relocating staff, choosing locations, identifying specific cost savings, implementing marketing campaigns.
Key Terms
- Corporate Objectives: Goals related to overall business performance, guiding strategic decisions.
- Short-termism: Predominant focus on short-term results, potentially harming long-term performance.
SWOT Analysis
- Strengths and Weaknesses: Analyze internal capabilities, identify weaknesses as areas for improvement (e.g., low market share, outdated technology).
- Opportunities: Identify external factors that offer positive potential (e.g., technological innovations, market growth).
- Threats: Assess external risks that could obstruct achieving objectives (e.g., competition, regulatory changes).
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Description
Explore the SMART framework for setting effective corporate objectives. This quiz covers the definitions of Specific, Measurable, Achievable, Relevant, and Time-bound objectives essential for strategic planning in a business context.