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All 20 Flashcards — Conflicts between objectives
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Question
State one example of conflicting business objectives.
Answer
Profit maximisation versus ethical objectives (e.g. cutting costs could worsen working conditions).
💡 Hint
Profit vs ethics is the classic conflict.
Question
State one way managers deal with conflicting objectives.
Answer
Prioritisation: deciding which objective is most important at that time.
💡 Hint
Pick the priority for NOW.
Question
In an exam, what is Step 1 when answering an objectives conflict question?
Answer
Identify the two conflicting objectives clearly (name them).
💡 Hint
Name both objectives first.
Question
True or false: Business objectives often conflict.
Answer
True. Many objectives pull in different directions and require trade-offs.
💡 Hint
Trade-offs are normal.
Question
Why can growth conflict with quality?
Answer
Rapid expansion can overstretch staff and systems, reducing product quality or customer service standards.
💡 Hint
Fast growth can reduce control.
Question
State one common conflict involving ethics.
Answer
Profit versus ethics (lower costs vs fair treatment/environmental protection).
💡 Hint
Profit vs ethics.
Question
What is meant by compromise in objective conflicts?
Answer
Partially satisfying competing objectives rather than maximising only one (e.g. moderate profit plus higher ethical standards).
💡 Hint
Not perfect, but balanced.
Question
How do you move from “listing” to “analysis” in a conflict answer?
Answer
Explain WHY the objectives clash (show the mechanism), not just that they conflict.
💡 Hint
Use “because…” with a mechanism.
Question
Name one strategy managers use to handle conflicting objectives.
Answer
Prioritise, compromise, or sequence objectives over time.
💡 Hint
Pick: prioritise / compromise / time-based.
Question
Explain a time-based strategy for conflicting objectives.
Answer
Focus on one objective first (e.g. survival/cash flow), then shift to another later (e.g. growth) when conditions improve.
💡 Hint
Sequence objectives over time.
Question
What makes a conflict answer “applied” to the case study?
Answer
Link each objective and trade-off directly to facts in the stimulus (industry, costs, stakeholders, market conditions).
💡 Hint
Use stimulus facts as evidence.
Question
Explain how a market share objective can conflict with profitability.
Answer
Lowering prices to gain market share can reduce profit margins, so profitability may fall even if sales rise.
💡 Hint
Market share via price cuts hits margins.
Question
State one reason shareholder objectives may conflict with employee objectives.
Answer
Shareholders may want higher dividends, while employees want higher wages and better conditions, increasing costs.
💡 Hint
More pay vs more dividends.
Question
State two factors that influence which objective is prioritised.
Answer
Stage of the business life cycle and economic conditions (e.g. recession vs growth).
💡 Hint
Context decides the priority.
Question
What determines which objective should dominate?
Answer
Context: business stage, economic conditions, competition, stakeholder pressure, and legal/ethical constraints.
💡 Hint
Context decides.
Question
For 8–10 mark conflict questions, what should you include before the conclusion?
Answer
Discuss consequences of prioritising each objective and show the trade-offs.
💡 Hint
Show BOTH sides, then judge.
Question
Exam rule for conflict answers: what must you show?
Answer
Awareness of trade-offs and a justified decision, applied to the business in the question.
💡 Hint
Trade-offs + justification + case.
Question
What should a top-mark conclusion on conflicts avoid?
Answer
Claiming there is a perfect solution. Instead, justify a realistic decision and acknowledge trade-offs.
💡 Hint
No “perfect solution”. Justify.
Question
Why is communication important when objectives conflict?
Answer
Explaining trade-offs reduces misunderstanding and helps maintain stakeholder support and trust.
💡 Hint
Explain the trade-off.
Question
Give one example of short-term profit conflicting with long-term objectives.
Answer
Cutting training to reduce costs boosts short-term profit but reduces long-term productivity and service quality.
💡 Hint
Short-term savings can create long-term damage.
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Topic 1.3 hub
Business objectives
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