1.3 Business Objectives (IB BM)

Identify the statement that best defines a vision statement.

• A statement of a firm’s aims, values and the fundamental purpose of the business

• An illustration of a company’s aspirations for the future

• An outline of how an organization is to achieve its aims and objectives in the long term

• A short, captivating phrase used in branding and advertising

Identify the statement that best defines a mission statement.

• An explanation of a firm’s aims, values and fundamental purposes of existence

• Short-term plans to achieve an organization’s tactical objectives

• An outline of how an organization is to achieve its aims and objectives in the long term

• A short, captivating phrase used in branding and advertising

Identify the difference between a vision and a mission statement.

• A mission is an aspirational aim, whereas a vision is more practical

• A mission is achieved if the vision is achieved.

• A vision should be more descriptive, whereas a mission will include verbs

• A vision is focused on the short term, whereas a mission is long-term

Identify the common business objectives from the following lists.

• Ethical objectives, growth, profit, and market segmentation

• Growth, profit, product development, and protecting shareholder value

• Profit, pricing, growth, and ethical objectives

• Profit, growth, protecting shareholder value, and ethical objectives

Identify the statement that best defines a strategic objective.

• A broadly defined long term goal found in the mission statement

• How an organization is to achieve its aims and objectives in the long term

• Short term targets for sales staff

• Clearly-defined, measurable targets a firm wishes to achieve

Objectives should be SMART. Identify the elements of the SMART acronym.

• Short-term, monetary, achievable, realistic, time-bound

• Short-term, marketable, authentic, realistic, transient

• Specific, marketable, achievable, restrained, technical

• Specific, measurable, achievable, realistic, time-bound

_________ objectives are long term targets, whereas ________ objectives are short-term goals. Identify the missing terms.

• Actionable, strategic

• Strategic, actionable

• Strategic, Tactical

• Tactical, strategic

Identify the external reason why a business would change its objectives.

• Economic conditions

• Merger or acquisition

• New leadership

• New product development

Identify why firms set ethical objectives.

• It increases customer loyalty

• It motivates employees

• It improves the corporate image

• It reduces compliance costs

Identify which stakeholders should be considered when setting ethical objectives.

• Customers

• Shareholders

• The local community

• All of the above