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1.3 Comprehension questions

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  • 1.3 Comprehension questions

1.3 Organizational objectives – Comprehension Questions

Read the text on InThinking Business Management and answer the questions that follow.

Please note there are no answers provided on this website for the comprehension questions. The intention is for students to use these to guide their revision. They can refer to the relevant section of the website for the content coverage of the syllabus.

Vision statement and mission statement (AO2)
  1. What is meant by a vision statement?
  2. What is the purpose of a vision statement?
  3. What is a mission statement?
  4. What is the purpose of a mission statement?
  5. What are the differences between a vision statement and a mission statement?
Aims, objectives, strategies and tactics, and their relationships (AO3)
  1. What are aims?
  2. What are objectives?
  3. What is meant by SMART objectives?
  4. How do strategic objectives differ from tactical and operational objectives?
  5. Why are organizational objectives essential in all business organizations?
  6. Give three examples of organizational objectives for a commercial firm.
  7. How might organizational objectives in the public sector differ from those in the private sector?
  8. What are strategies?
  9. What are tactics?
  10. How do aims, objectives, strategies and tactics relate to each other?
The need for organizations to change objectives and innovate in response to changes in internal and external environments (AO3)
  1. Why might a business change its organizational objectives over time?
  2. What is meant by the internal business environment?
  3. What is meant by the external business environment?
  4. Why do businesses need to change / be innovative in response to changes in the internal environment?
  5. Why do businesses need to change / be innovative in response to changes in the external environment?
Ethical objectives and corporate social responsibility (CSR) (AO1)
  1. What is meant by corporate social responsibility (CSR)?
  2. What are ethical objectives?
  3. Give three examples of ethical objectives.
The reasons why organizations set ethical objectives and the impact of implementing them (AO3)
  1. Why are business organizations increasingly aware of the need to set ethical objectives as part of their overall corporate social responsibility?
  2. How can setting ethical objectives and acting ethically help an organization to gain competitive advantages?
  3. Why might pursuing ethical objectives be costly for a business?
  4. What is Carroll’s CSR Pyramid?
The evolving role and nature of Corporate Social Responsibility (AO3)
  1. How do the role and nature of corporate social responsibilities evolve over time?
  2. Use an example to explain why opinions / perspectives in society might change over time.
  3. What is meant by the ‘triple bottom line’?
SWOT analysis of a given organization (AO3, AO4)
  1. What is meant by SWOT analysis?
  2. What is the difference between internal business factors (that affect the operations of an organization) and the external business environment?
  3. In the context of SWOT analysis, what are strengths?
  4. In the context of SWOT analysis, what are weaknesses?
  5. In the context of SWOT analysis, what are opportunities?
  6. In the context of SWOT analysis, what are threats?
  7. State any two advantages of SWOT analysis as a business management tool.
  8. State any two disadvantages of SWOT analysis as a business management tool.
  9. What are the main advantages of using SWOT analysis as a management tool?
  10. What are the main limitations of using SWOT analysis as a management tool?
Ansoff matrix for different growth strategies of a given organization (AO3, AO4)
  1. What is meant by the Ansoff Matrix?
  2. What is meant by market penetration?
  3. Why is market penetration a relatively low-risk strategy?
  4. What is meant by market development?
  5. Why does market development carry an element of risk as a growth strategy?
  6. What is meant by product development?
  7. Why is product development a medium-risk growth strategy?
  8. What is meant by diversification?
  9. Why is diversification regarding in the Ansoff matrix a high risk growth strategy?
  10. How does ‘related diversification’ differ from ‘unrelated diversification’?
Review Quiz

For further practise, students should have a go at these 20 questions to test their understanding of the learning outcomes for this unit.

Which term refers to an organization’s deliberate decisions and actions that impact society in a positive way?

Corporate social responsibility (CSR) refers to an organization’s deliberate attempts to have a positive impact on individuals and societies.

Drag the text boxes to fill in the missing parts in the following text:

Drucker  specific achievable measurable relevant time-specific 

Peter    suggested that organizational objectives should be SMART. Objectives set by a business should be clearly defined (   ) and be quantifiable to see if they can be achieved for not (   ), set within reasonable reach (   ), be of use to the purpose of the organization (   ), and have a timeframe set (   ).

 

Fill in the missing parts in the following text:

    - A growth strategy in the Ansoff matrix which focuses on using customer loyalty to persuade them (and prospective customers) to buy a new product.

 

Fill in the missing parts in the following text:

    - A growth strategy in the Ansoff matrix, which involves a business launching new products in new markets, e.g. Honda’s lawnmowers.

 

Which of the following is not a reason for a business setting ethical objectives?

Setting ethical objectives may mean a business needs to change the way it does things (for example, changing to a fair trade supplier) and this can result in high operational costs.

Fill in the missing parts in the following text:

    - A growth strategy in the Ansoff matrix that focuses on developing existing markets with existing products to increase sales revenue and market share.

 

What are the day-to-day objectives set by floor managers of a business known as?

Operational objectives are the day-to-day objectives set by floor managers.

Which strategic management tool is used to devise product and market growth strategies for an organization?

The Ansoff matrix is a strategic management decision-making tool, used to devise the product and market growth strategies for a business.

Fill in the missing parts in the following text:

These are factors in the external business environment that create prospects or openings for a firm’s growth and development.  

 

According to Ansoff’s Matrix, which strategy involves selling existing products to existing customers?

Market development is a growth strategy that involves selling existing products in new markets.

Fill in the missing parts in the following text:

    - These are the long-term aspirations of an organization.

 

Which term describes the inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future?

The vision statement of an organization is its all-inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future.

What do the external factors in a SWOT analysis include?

External factors in a SWOT analysis are the opportunities and threats faced by an organization, which it has no influence or control over.

An organization may change objectives due to which change in the external environment?

Technological changes happen in the external environment as a business has no influence or control over these (technological changes).

Which of the following statements is not true about a vision statement?

Although a vision statement outlines where a business sees itself going in the future, it does not provide measurable targets or a timeframe.

Fill in the missing parts in the following text:

    - These are moral guidelines or codes of practice which govern good organizational behaviour.

 

What do the internal factors in a SWOT analysis include?

Internal factors in a SWOT analysis are the strengths and weaknesses within a business, which the firm has at least some influence and control over.

Which term refers to the short to medium-term goals that clarify what a business intends to achieve?

Objectives are short- to medium-term goals that can clarify how a business will achieve its aims.

Fill in the missing parts in the following text:

    - A strategic analysis tool that allows managers to assess the current situation facing an organization, including both internal factors and the external business environments.

 

Fill in the missing parts in the following text:

    - A succinct and motivating declaration of an organization’s purpose of existence, who they are and what they do.

 

Total Score:

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