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’
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.?
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.
