Transcript of "3.2 understanding financial objectives - moodle"
Do NowAnswer the following questions by givingme….3 possible ‘corporate’ objectives.2 examples of ‘functional’ areas.1 definition of a ‘functional strategy’
Understanding Financial ObjectivesUnit 3 – Strategies for Success
Learning ObjectivesBy the end of this lesson you should be able to:1. Understand the range of financial objectives typically set by larger businesses.2. Explain how internal and external factors can influence the setting of financial objectives.
What are financial objectives? What is meant by a financial objective? Complete the handout to find out! Prepare to discuss your answers.Team TaskSummarise your given ‘financial objective’ and prepare to give….• A point to definition of your given objective.• 3 bullet points to describe your given objective.
Internal and External InfluencesThink about any internal andexternal influences onfinancial objectives.Pair and discuss your ideas.Share and discuss yourteam’s ideas.
Internal and External InfluencesInternal Influences External InfluencesCharacteristics of the firm – size, status Competitors actions – the firm may beand age of the firm. engaged in a price war and thereforeE.g. - Small to medium-sized firms may man have to take the approach of costonly have an objective of satisficing. minimisation if they are to remain competitive.Owners –objectives could be based onthe motives the owners and the Economics conditions – directors may berelationship with directors. aware of current and predicted future trends in the economy.Sector – is the business in the public or E.g. – If the economy is unstable then theprivate sector. Aim to maximise profits of rate of buying and selling may reduce.offer a service.?
Quick questions!Complete the 3questions at the end ofyour handout.Write in full sentences.
Re-cap Learning ObjectivesYou should now be able to :1. Understand the range of financial objectives typically set by larger businesses.2. Explain how internal and external factors can influence the setting of financial objectives.
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.