Business edexcel Unit 3-revision 2022 Updated

Business edexcel Unit 3-revision 2022 Updated AIM - ANS-long term ideas on how a business should develop . Mission Statement - ANS-a qualitative statement of an organization's aims . it conveys to everyone the value of the brand and why it exists. It can influence customer perceptions of the products as well as encouraging employees to focus on issues such as costs or quality. Hierarchy of mission statements - ANS-mission statements corporate objectives department objectives Corporate objectives - ANS-Corporate aims + Mission statements = corporate objectives. They are SMART plans to achieve over a period of time to make decisions. Corporate objectives should flow from the mission statement and corporate vision Usually set by senior management for the whole company SMART objectives - ANS-Specific; This means there must be a clear definition, often including a number Measurable; This means the achievement can be checked Achievable; This means you can achieve your target but you may need to stretch yourself Realistic; This means that the target should sensible so that you can achieve it Time-related; this means setting a date for achievement or review Strategy - ANS-Plan of action to fulfil an objective Main uses of mission statement; - ANS-Focus; helps to focus and involve all employees in the business Profitability; helps to motivate employees to become more efficient which could have an impact on profitability Identity; helps to create an identity in a competitive marketplace Why are mission statements useful (4 reasons)? - ANS-- Can increase motivation - Can help stakeholders to understand the central aim of the business - Can inform the consumer - Can give staff a sense of common purpose and direction Why are mission statements not useful (4 reasons)? - ANS-- Can just be used for PR and designed to create a good public image - May be vague - It is impossible to sum up what a business is all about in a few sentences - Usually impossible to improve main limiations of mission statement - ANS-Can be unrealistic and over optimistic Can be a waste of management time and resources Can lead to conflicts and inconsistencies when not properly written Can be ambiguous Can become obsolete as the business develops but the mission statement remains the same (perhaps due to a merger or change of product, iPod to iPhone for example) stakeholders perspective - ANS-Owners Owners will want to maximise shareholder value of the business Managers Manager will look for core aims and objectives of the business to lead their staff / teams with. CONTINUES...