Functional Objectives & Strategies

Aims / goals General statements of what a business intends to achieve. Precise

details of those intentions are set out in objectives
Business unit How a business attempts to compete successfully in a particular
strategy market
Corporate objectives Objectives that relate to the business as a whole. Usually set by
top management.
Corporate strategy Concerned with the overall purpose and scope of the business
activities
Cost leadership A business strategy concerned with aiming to be the lowest-cost
producer in an industry. Usually requires exploitation of economies
of scale
Functional Set for each major business function – designed to ensure that the
objectives corporate objectives are met
Mission statement A statement of the overall purpose of the business
Shareholder value Where shareholders earn a return from their investment which is
greater than their required rate of return
SMART objectives Objectives that are more likely to be achieved because they are
Specific, Measurable, Achievable, Realistic and Timed
Social responsibility The way in which a business meets its responsibilities to society as a
key external stakeholder
SWOT analysis Assessment of the internal strengths and weaknesses of a business
and the external opportunities and threats that the business needs to
consider
Targets Similar to objectives. Targets are often set at an individual or team
level
Functional Objectives and Stratigies
General statements of what a business intends to achieve. Precise
details of those intentions are set out in objectives
How a business attempts to compete successfully in a particular
market
Objectives that relate to the business as a whole. Usually set by top
management.
Concerned with the overall purpose and scope of the business
activities
A business strategy concerned with aiming to be the lowest-cost
producer in an industry. Usually requires exploitation of economies of
scale
Set for each major business function – designed to ensure that the
corporate objectives are met
A statement of the overall purpose of the business
Where shareholders earn a return from their investment which is
greater than their required rate of return
Objectives that are more likely to be achieved because they are
Specific, Measurable, Achievable, Realistic and Timed
The way in which a business meets its responsibilities to society as a
key external stakeholder
Assessment of the internal strengths and weaknesses of a business
and the external opportunities and threats that the business needs to
consider
Similar to objectives. These are often set at an individual or team
level