ERAN ACADEMY
BUSINESS STUDIES REVISION, TOPIC: Business objectives
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Section A: Multiple Choice Questions
1. Which of the following best explains why businesses set objectives?
A. To confuse competitors
B. To provide direction and measure success
C. To increase bureaucracy
D. To eliminate government influence
2. SMART objectives should be:
A. Simplified, Meaningful, Allocated, Reactive, Time-sensitive
B. Specific, Measurable, Achievable, Relevant, Time-bound
C. Sustainable, Market-driven, Accessible, Reliable, Tangible
D. Strategic, Manageable, Adaptive, Resourceful, Transparent
3. How does a mission statement relate to corporate objectives?
A. The mission statement outlines specific financial goals
B. Corporate objectives explain how the mission will be achieved
C. Mission statements focus on short-term targets
D. Corporate objectives are vague and general
4. Why is effective communication of business objectives to employees important?
A. It reduces operational costs
B. It ensures employees understand strategic goals
C. It eliminates the need for leadership
D. It only applies to multinational corporations
Section B: Short Answer Questions
1. Explain WHAT is corporate objectives?
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2. What makes an objective SMART, and why is this important in business planning?
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3. How can corporate social responsibility (CSR) influence a company’s business
objectives?
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4. Why might a business’s objectives change over time? Provide two examples.
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Section C: Essay Questions
1. “Assess the importance of setting SMART objectives for business success.”
Discuss how businesses use SMART objectives in strategic planning and decision-
making.
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2. “Mission statements and corporate objectives: How do they guide business
strategy?”
Explain their roles and evaluate how they shape long-term business planning.
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3. “The relationship between objectives and strategies: Why does it matter?”
Discuss how well-defined objectives influence business strategies and decision-making.
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4. “Why is communication of objectives to stakeholders, especially employees,
critical?”
Analyze the impact of transparency and goal alignment on business efficiency and
motivation.
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5. “Critically assess how corporate social responsibility and ethics influence business
objectives and activities.”
Explore ethical considerations in business decision-making and their impact on corporate
objectives.
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Peugeot Citroen’s road ahead laid out
The chairman of the French car maker Peugeot Citroen has established the company aim of
becoming the ‘most competitive car maker in Europe by 2015’. This overall aim is supported by
more specific and measurable objectives. The prof t margin of each car sold is targeted to
increase from 2% to 7% by 2017. The overall sales objective is to reach four million car sales a
year. One million car sales are aimed for in the emerging markets by 2017. In Europe, one of
the most competitive car markets in the world, the target is to increase sales by 300,000 cars a
year by the same date. Departmental operating targets have also been established. For
example, the human resources department must prepare for up to 8,000 job losses and
operations must aim to cut fixed manufacturing costs by 30% and costs of purchasing car parts
by 4–6% a year. Marketing must plan to launch 12 new models in the Chinese market. The
chairman also announced his intention to take both car brands up market and establish them as
premium car brands that increasing numbers of customers will want to own.
1 a Define the term ‘company aim’.
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b Briefly explain the term ‘measurable objectives’.
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2 Explain whether the objectives outlined by Peugeot Citroen fit the SMART criteria.
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