Business and Economics Revision

Whats the difference between long and short objectives?

Short term objective: objectives to be for a short amount of time (1 month- 1 year)

Long term objective: Objectives that are aimes to be achieved in a longer amount of time (1 year onwards)

How do firms determain what their aims should be?

- Size of the company
- Start up
- Prices of products
- When it needs to be achieved
- Potential growth
- Merdges/ takeovers in the market
- depending on weather the market is in decline/growth

what is a mission statement?

When a business start up, it will devise a mission statement, which will set out what they want to achieve

What do you understand by the Ansoffs matrix, define the seperate strategies that can be used

Four strategies that businesses in relation to marketing a business will use each are used at a particular moment

Market penetration- Introduction to the market encourage sales development
Market development- Attempts to further increasements in market share
New-product development- Offers more variety, meets customers needs more products with less risk
Diverstation- Entering a new market, business establishes themselves

what are marketing objectives, tactics and strategies?

Marketing objective: several statements of purpose or aims to make a profit within the firm.
Marketing Strategic: Plam detailing how the marketing objective will be fufilled
Marketing tactic: Strategy is implented through the use of marketing tactics- these include decisions that need to be made to ensure the strategy is sucessful

SMART targets how theyre importent and how they impact upon objectives

Specific

Specific objectives are clear and well-defined. This helps both the performer and the manager, as the performer knows what is expected of them and the manager is able to monitor and assess actual performance against the specific objectives.

Specific objectives may well include a scope description, which includes details of what is not included.

Measurable

Progress towards objectives often need to be to be monitored whilst work is under way. It is also very useful to know when that work has been done and the objectives are completed. A measurable objective achieves this end.

Achievable

When giving objectives, the person may not be able to achieve it for various reasons, including a lack of skill, not having enough resources (computers, tools, etc.), not having access to key people and not having management support. Achievable objectives ensure that everything is in place and that if the person does not reach the goals they cannot reasonably point the finger elsewhere.

Relevant

Objectives should also add useful value within the context where they are being set, being aligned with strategies and higher goals.

Timely

Descriptions of objectives should also include timescales of what is required by when. This may also include details of delivery, stating (if relevant) where objectives are to be completed.

Giving a time scale adds appropriate sense of urgency and ensures that the objectives do not dribble out over an unreasonably long timescale.

They can impact the objective by setting a specific goal for a specific time, so they would have to change the time and evaluate weather theyre achievable or not, which impacts the overall objective.