OCR A-Level Business business objectives and strategy overview quiz quiz

The mission states the overall purpose; objectives are measurable targets that pursue it

They are simply the same thing written in two different ways, with no real distinction between them

Objectives always come first, and the mission is then written afterwards to summarise those objectives

Neither the mission nor the objectives has any real effect on the other; they are set independently

Start-ups can never make any profit at all until they have been trading for several years

Limited cash, an untested product and high failure risk make staying solvent the priority

Survival is required by law, so every newly registered company must set it as an objective

It is the only objective that any business is ever able to have, whatever its size or age

They are identical terms, both describing outcomes whose probabilities are completely unknown

Uncertainty has known probabilities and can be insured against, whereas risk cannot be predicted

Risk has known probabilities and can be insured; uncertainty cannot be predicted

Risk only ever affects large firms, while uncertainty is something that only small firms face

Strengths and weaknesses

Cost leadership and differentiation

Buyers and suppliers

Opportunities and threats

The bargaining power of buyers

The mission statement, which sets out the overall purpose of the business

The Ansoff matrix, the framework used to plan a firm's growth strategies

Market penetration, the strategy of selling more of an existing product

Market development

Cost leadership

Diversification

Product development

Market penetration

Market development

Diversification

Product development

Organic growth is always faster than inorganic growth, since it does not rely on other firms

They are the same thing, just two different labels used to describe one identical process of growth

Inorganic growth is always cheaper than organic growth, because no new outlets have to be opened

Organic growth comes from within the firm; inorganic growth comes through mergers and takeovers

125,000

155,000

175,000

250,000

Zero float

The most float of any activity

Exactly one day

Half the project duration