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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)
- What is meant by a vision statement?
- What is the purpose of a vision statement?
- What is a mission statement?
- What is the purpose of a mission statement?
- What are the differences between a vision statement and a mission statement?
Aims, objectives, strategies and tactics, and their relationships (AO3)
- What are aims?
- What are objectives?
- What is meant by SMART objectives?
- How do strategic objectives differ from tactical and operational objectives?
- Why are organizational objectives essential in all business organizations?
- Give three examples of organizational objectives for a commercial firm.
- How might organizational objectives in the public sector differ from those in the private sector?
- What are strategies?
- What are tactics?
- 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)
- Why might a business change its organizational objectives over time?
- What is meant by the internal business environment?
- What is meant by the external business environment?
- Why do businesses need to change / be innovative in response to changes in the internal environment?
- Why do businesses need to change / be innovative in response to changes in the external environment?
Ethical objectives and corporate social responsibility (CSR) (AO1)
- What is meant by corporate social responsibility (CSR)?
- What are ethical objectives?
- Give three examples of ethical objectives.
The reasons why organizations set ethical objectives and the impact of implementing them (AO3)
- Why are business organizations increasingly aware of the need to set ethical objectives as part of their overall corporate social responsibility?
- How can setting ethical objectives and acting ethically help an organization to gain competitive advantages?
- Why might pursuing ethical objectives be costly for a business?
- What is Carroll’s CSR Pyramid?
The evolving role and nature of Corporate Social Responsibility (AO3)
- How do the role and nature of corporate social responsibilities evolve over time?
- Use an example to explain why opinions / perspectives in society might change over time.
- What is meant by the ‘triple bottom line’?
SWOT analysis of a given organization (AO3, AO4)
- What is meant by SWOT analysis?
- What is the difference between internal business factors (that affect the operations of an organization) and the external business environment?
- In the context of SWOT analysis, what are strengths?
- In the context of SWOT analysis, what are weaknesses?
- In the context of SWOT analysis, what are opportunities?
- In the context of SWOT analysis, what are threats?
- State any two advantages of SWOT analysis as a business management tool.
- State any two disadvantages of SWOT analysis as a business management tool.
- What are the main advantages of using SWOT analysis as a management tool?
- 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)
- What is meant by the Ansoff Matrix?
- What is meant by market penetration?
- Why is market penetration a relatively low-risk strategy?
- What is meant by market development?
- Why does market development carry an element of risk as a growth strategy?
- What is meant by product development?
- Why is product development a medium-risk growth strategy?
- What is meant by diversification?
- Why is diversification regarding in the Ansoff matrix a high risk growth strategy?
- 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.
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.
Drag the text boxes to fill in the missing parts in the following text:
objectives environment technological changes ethical social operational loyalty risk control
Businesses often need to change their due to changes in the internal or external environment. Changes in the external are those which occur outside of an organization’s control, i.e. it has no influence or over these factors. For example, changes happen in the external environment because a business has no influence or control over these or developments as a whole. Similarly, objectives are goals based on a business providing a or environmental benefit. However, setting ethical objectives may mean the business needs to change the way it does things (such as changing to a fair trade supplier) but this can result in high costs. Businesses may also set ethical objectives in order to create a positive corporate image, to build customer , and to reduce the of legal compensation.
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 term refers to the growth strategy in Ansoff's matrix which involves a business launching new products in new markets?
Diversification is the high-risk growth strategy in the Ansoff matrix, which involves a business launching new products in new markets.
Which of the following is not a reason for a business setting ethical objectives?
Which term refers to the short-term methods, often on a daily basis, used to implement business strategy?
Tactics are the short-term methods, often on a daily basis, used to implement business strategy.
Drag the text boxes to fill in the missing parts in the following text:
mission statement vision statement measurable timeframe Objectives Tactics Strategies plans
A defines in a succinct way the reason for an organization’s existence. By contrast, a sets out the organization’s long-term aspirations, although this does not specify targets or a specific . are short- to medium-term goals of a business. refers to the short-term methods that businesses use to achieve their organizational objectives. are the methods that a business uses to achieve its long-term for the whole organization.
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:
- A succinct and motivating declaration of an organization’s purpose of existence, who they are and what they do.
Which term refers to the growth strategy in Ansoff's matrix that involves a business developing existing markets with existing products?
Market penetration is th growth strategy in the Ansoff matrix that focuses on developing existing markets with existing products in order to increase sales revenue and market share.
Fill in the missing parts in the following text:
- CSR refers to an organization’s decisions and actions that impact society in a positive way.
Fill in the missing parts in the following text:
- These are moral guidelines or codes of practice which govern good organizational behaviour.
Which term describes an organization’s duties to its internal and external stakeholder groups in acting as a good corporate citizen?
Corporate social responsibility (CSR) is the idea that a business has an obligation to act in a way that will positively impact society.
Fill in the missing parts in the following text:
- These are the clearly defined targets of a business in order to achieve its aims. They are often based on the SMART acronym – specific, measurable, agreed, realistic and time specific.
Which term refers to the actions required to achieve the short term objectives of an organization?
Tactics are the actions required to achieve the short term objectives of an organization.
What is the term used to describe the medium- to long-term objectives set by senior managers to guide the business to achieve its aims?
Strategic objectives are the medium- to long-term objectives set by senior managers in order to guide the business to achieve its organizational aims.
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.
Which term refers to clearly defined targets of a business in order to achieve its aims?
SMART objectives are clearly defined targets (goals) of a business, in order to achieve its aims. These objectives are specific, measurable, agreed (or achievable), realistic and time specific.
What are the long-term goals of a business known as, often expressed in its mission statement?
Aims are the long-term goals of a business, which are often expressed in its mission statement.
Fill in the missing parts in the following text:
- Organizational goals based on moral guidelines that determine decision-making.
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