AQA_Business_1-7-1-8_Workbook_Answers

1 Possible points might include:  the objectives of the leaders to achieve personal goals such as to work within a FTSE 100 business  the values of employees, e.g. to work for a business with high ethical standards 2 Possible points might include:  the objectives of shareholders which might be to maximise their value in the short term  the degree of power held by customers, e.g. to select which business to buy from in a competitive environment 3 AO1 Knowledge = 2 marks AO2 Application = 2 marks Corporate objectives are the targets that a business wants to achieve within a given period of time, normally medium- to long-term. Possible benefits to a chain of fast food restaurants of setting corporate objectives include:  to provide a clear focus for all restaurants within the chain to help achieve a consistent brand message  to provide a common sense of direction to a large number of employees, many of whom are likely to be unskilled 4 AO1 Knowledge = 5 marks AQA A-level Business Topics 1.7–1.8 © Helen Coupland-Smith 2016 Hodder Education 1 Section 7 Analysing the strategic position of a business AO2 Application = 4 marks AO3 Analysis = 6 marks AO4 Evaluation = 10 marks Corporate objectives are the targets that a business wants to achieve within a given period of time, normally medium- to long-term. Business ownership is the legal status of a business in terms of whether it is unincorporated, i.e. a sole trader, or incorporated, i.e. a company. Possible reasons why business ownership is the biggest influence on a pharmaceutical business when setting corporate objectives include:  it is likely to be a large plc and therefore there is pressure from shareholders to maximise returns  shareholders will have a voting right and can therefore influence the setting of objectives  pharmaceuticals require heavy investment in R&D and therefore objectives will need to be attractive to potential investors Possible reasons why business ownership is not the biggest influence on a pharmaceutical business when setting corporate objectives include:  a pharmaceutical business may attract large amounts of media attention and will want to portray a positive image  objectives may be based around innovation to bring out new cures first  ethics and safety will be important considerations Overall:  business ownership will influence the business objectives as it is likely to have to keep shareholders happy. However, in the long run profits will be hit if other factors are ignored, e.g. if the business does not also have an objective of innovation  it depends upon the attitude of shareholders re short-termism versus long-term investment 5 Possible points might include:  strategies are medium- to long-term whereas tactics are short-term  strategies require a heavy investment of resources whereas tactics can be implemented without a high level of investment  tactical decisions may be delegated to junior employees while strategic decisions will be made at the top of the hierarchy  tactical decisions, unlike strategic decisions, can be easily reversed 6 D, Offer free copies with a voucher every Saturday for a month