Organizational objects

1. Smart

Specific - should apply directly to what that business does - not general terms.

Measurable - must set a quantitative value to know when the goal is achieved or how
                    much has been achieved.
Achievable - can be demotivating if it is something impossible(or seemingly impossible
                   to achieve).

Relevant - job specific so it has real meaning to each employee.

Time specific - without the element of time, it is impossible to determine the achievement
                      of a goal.

2. One benefit of corporate aim

They become the starting point for departmental objectives on which effective management is based.


3. A business without a long-term corporate plan or aim is likely to drift from event to event without a clear sense of purpose.


4. Mission statements outline the overall purpose of the organisation. A vision statement, on the other hand, describes a picture of the preferred future and outlines how the future will look if the organisation and achieves its mission.

5.

• Too vague and general so that they end up saying little which is specific about the business or its future plans.

• Based on a public relations exercise to make stakeholder groups 'feel good' about the organisation.
• Virtually impossible to analyse or disagree with.
• rather 'woolly' and lacking in specific detail, so it is common for two completely different businesses to have very similar mission statements.

6. Profit maximization - producing at the level of output where the greatest positive
                                  difference between total revenue and total costs is achieved.


7. profit satisficing - aiming to achieve enough profit to keep the owners happy but not aiming to work flat out to make as much profit as possible.


8. Large firms will be less likely to be taken over and should be able to benefit from economies of scale.


9. Businesses that do not attempt to grow may cease to be competitive and, eventually, will lose their appeal to new investors.


10. Three limitations

• Over-rapid expansion can lead to cash-flow problems.
• Sales growth might be achieved at the expense of lower profit margins
• Larger businesses can experience dis-economies of scale.

11.  The marketing mix of the business is proving to be less successful than that of its competitors.

12. The marketing mix of the business is proving to be more successful than that of its competitors.

13. for first two years of trading. 

14. Because of maximizing short-term sales revenue and shareholder value.