Edexcel A-level Business
Theme 3
Detailed mind maps on the
whole specification of theme
3
,Aim
Functional/ Department Objectives
– this is what the business is looking to achieve in the long term The - The day to day goals of functions or
oftern expressed as and overall vision
e.g. Macmillan Cancer Support “to do whatever it takes to Hierarch departments within a business drived form
corporate objectives
support people living with cancer y of - Fuctional objectives must be carefully aligned
Mission Statement Objective across departments so that all parts of the
• An expression of a business overall aim as well as its core values business are working towards the sahred goal
and context
s - E.g. the marketing department may aim to
• Informs the devlopment of corporte and functional objectives increase sale 3% each quarter
• Oftern expressed in inspirational terms to provide direction and a
common purpose for employees Summary:
e.g. ”googles mission is to organixe the worlds information and Aims and objectives serve as a guide for the businesses
make it universally accessible and useful” overall strategy and direction, helping to focus efforts and
Benfits Drawbakcs resources towards a common purpose
There is s hierarchy of objectves which cascade downwards
- can be used to - it is written form a biased
communicate the nature of business point of view
the organisation to the - critics say that mission Corporate Objectives
stakeholders statemnts are just piblic Critical Appraisal of Corporate Aims
- can be used to focus relation tools and are not • The content and expression of business aims will
strategies and energy of based of corporate likely change over time to reflect changing social
the business in a specific objecives attitudes and norms
direction - customers may not even • Are they just a PR stunt –
- attract investors or new know what the statement • 2013 KFC’s mission was ‘To sell food in a fast,
employees is so questionable how friendly environment that appeals to price
useful they are conscious, health-minded consumers - in the
same year it launched a burger that replaced the
Corporate Objectives: bread bun with extra layers of deep-fried chicken
• The specific performance goals set by senior mangement for the Objectives
business to achive overtime
• Derived foem the firms overall mission statement need to be
Revising the business aim and revisting the
• They fouce on achiveing specific levles of market share, profit, SMART: mission statement should be seen as a naturl
sales growth or new product / market developnent Specific step for business growth:
e.g. increase the volume of annual subscription renewalls by 12% - Involes a range of stakeholders
during 2023 Measurable - Newily idependent opportunities and threats can
Agreed be acknowledged
Realistic - Can generate public positive publisity
, Theroies of Corporate
UsesObjectives Limitations
Corporate Steategy: the overall
scope and direction of a business - the business can identify its - it only shows part of the picture
and the way in which its vrious
business operations work together
current services and their - it over simplifies the market
to achieve particular goals makets and see what strategy will - large MNCs may need thousands
They help provide a competitive
advantage
be best for the future of sib options
Effective corporate strategy - it helps to identfy potential new - should akso consider SMART
development requires careful markets or marketing strategies
consideration of internal (human,
capital) and external (economic, for a business
political, environmental) factors Ansoffs Matrix
• A tool for businesses with a growth objective
• It is used to identify an appropriate corporate strategy and
identify to level of risk
Market Penatration: Market Development:
• Least risky
• This involves sellimg more products to Involves finding and exploiting new market
existing customers by encoraging opportunities for existing products by:
More regualr use of the product • Entering new markets abroad
Brand loyalty • Repositiong the product to sell to different
customers
• Seeking complementarty locations
Product development:
Diversification:
• Involves elling new or improved products
to existing customers Is the most risky growth strategy as it
• Redesigning packaging and aesthetic involves targeting new customers with
features new or redevleoped products
• Relaunching heritag products at e.g. Greggs launching a range of
commerically convenient intervals themed clothing products
e.g. cadbury relauches Christmas- themed
Theme 3
Detailed mind maps on the
whole specification of theme
3
,Aim
Functional/ Department Objectives
– this is what the business is looking to achieve in the long term The - The day to day goals of functions or
oftern expressed as and overall vision
e.g. Macmillan Cancer Support “to do whatever it takes to Hierarch departments within a business drived form
corporate objectives
support people living with cancer y of - Fuctional objectives must be carefully aligned
Mission Statement Objective across departments so that all parts of the
• An expression of a business overall aim as well as its core values business are working towards the sahred goal
and context
s - E.g. the marketing department may aim to
• Informs the devlopment of corporte and functional objectives increase sale 3% each quarter
• Oftern expressed in inspirational terms to provide direction and a
common purpose for employees Summary:
e.g. ”googles mission is to organixe the worlds information and Aims and objectives serve as a guide for the businesses
make it universally accessible and useful” overall strategy and direction, helping to focus efforts and
Benfits Drawbakcs resources towards a common purpose
There is s hierarchy of objectves which cascade downwards
- can be used to - it is written form a biased
communicate the nature of business point of view
the organisation to the - critics say that mission Corporate Objectives
stakeholders statemnts are just piblic Critical Appraisal of Corporate Aims
- can be used to focus relation tools and are not • The content and expression of business aims will
strategies and energy of based of corporate likely change over time to reflect changing social
the business in a specific objecives attitudes and norms
direction - customers may not even • Are they just a PR stunt –
- attract investors or new know what the statement • 2013 KFC’s mission was ‘To sell food in a fast,
employees is so questionable how friendly environment that appeals to price
useful they are conscious, health-minded consumers - in the
same year it launched a burger that replaced the
Corporate Objectives: bread bun with extra layers of deep-fried chicken
• The specific performance goals set by senior mangement for the Objectives
business to achive overtime
• Derived foem the firms overall mission statement need to be
Revising the business aim and revisting the
• They fouce on achiveing specific levles of market share, profit, SMART: mission statement should be seen as a naturl
sales growth or new product / market developnent Specific step for business growth:
e.g. increase the volume of annual subscription renewalls by 12% - Involes a range of stakeholders
during 2023 Measurable - Newily idependent opportunities and threats can
Agreed be acknowledged
Realistic - Can generate public positive publisity
, Theroies of Corporate
UsesObjectives Limitations
Corporate Steategy: the overall
scope and direction of a business - the business can identify its - it only shows part of the picture
and the way in which its vrious
business operations work together
current services and their - it over simplifies the market
to achieve particular goals makets and see what strategy will - large MNCs may need thousands
They help provide a competitive
advantage
be best for the future of sib options
Effective corporate strategy - it helps to identfy potential new - should akso consider SMART
development requires careful markets or marketing strategies
consideration of internal (human,
capital) and external (economic, for a business
political, environmental) factors Ansoffs Matrix
• A tool for businesses with a growth objective
• It is used to identify an appropriate corporate strategy and
identify to level of risk
Market Penatration: Market Development:
• Least risky
• This involves sellimg more products to Involves finding and exploiting new market
existing customers by encoraging opportunities for existing products by:
More regualr use of the product • Entering new markets abroad
Brand loyalty • Repositiong the product to sell to different
customers
• Seeking complementarty locations
Product development:
Diversification:
• Involves elling new or improved products
to existing customers Is the most risky growth strategy as it
• Redesigning packaging and aesthetic involves targeting new customers with
features new or redevleoped products
• Relaunching heritag products at e.g. Greggs launching a range of
commerically convenient intervals themed clothing products
e.g. cadbury relauches Christmas- themed
