3.2 understanding financial objectives - moodle
- 1. Do Now Answer the following questions by giving me…. 3 possible ‘corporate’ objectives. 2 examples of ‘functional’ areas. 1 definition of a ‘functional strategy’
- 2. Understanding Financial Objectives Unit 3 – Strategies for Success
- 3. Learning Objectives By 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.
- 4. What are financial objectives? What is meant by a financial objective? Complete the handout to find out! Prepare to discuss your answers. Team Task Summarise your given ‘financial objective’ and prepare to give…. • A point to definition of your given objective. • 3 bullet points to describe your given objective.
- 5. Internal and External Influences Think about any internal and external influences on financial objectives. Pair and discuss your ideas. Share and discuss your team’s ideas.
- 6. Internal and External Influences Internal Influences External Influences Characteristics of the firm – size, status Competitors actions – the firm may be and age of the firm. engaged in a price war and therefore E.g. - Small to medium-sized firms may man have to take the approach of cost only have an objective of satisficing. minimisation if they are to remain competitive. Owners –objectives could be based on the motives the owners and the Economics conditions – directors may be relationship 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 the private sector. Aim to maximise profits of rate of buying and selling may reduce. offer a service.?
- 7. Quick questions! Complete the 3 questions at the end of your handout. Write in full sentences.
- 8. Re-cap Learning Objectives You 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.