Relationship between Objectives, strategy and tactics:

• An objective is set by a business to achieve a particular goal.
• A strategy is the action that the business uses in order to achieve its objectives
• A tactic is a particular step that the business takes to achieve its strategy

To develop a strategy a company has to complete an internal and external audit to look at the strengths and weaknesses it has.

Internal audit:

People:

• Labour Turnover
• Motivation
• Absenteeism
• Productivity

Marketing:

• Sales
• Advertising
• Sales staff performance

Operations Management:

• Productivity
• Delivery
• Stock Control

Financial:

• Budgets and variances
• Profitability
• Cashflow
• Investment appraisal

Other Factors that can affect a Businesses Stratergy:

External Audit - for this business use the PEST method to identify threats and weaknesses

Political - Whether the actions of the government will affect the business through changed laws or taxes being raised.

Economic - Where an economy is on its cycle can affect a business choices as they will not be wanting to expand during a recession when no consumer has money to spend,

Social - Whether a population will actually buy the product that the business is trying to sell is a key bit of information they need to know in order to be successful

Technological - Changes in technology can provide a business with the opportunity of being cutting edge in its market. Or alternatively it can be threatened through their equipment being outdated.

Competition - Looking at how the operations of their competitors will affect any new operations they plan to undertake.

Culture- A business needs to take into account the spending characteristics of the population they are trying to sell to.

Ethics- Needs to consider how ethical the operation appears to the consumer and how they may react.

Pressure Groups- How some pressure groups may react to the businesses planned undertaking.

Environment- How a business's undertaking will affect the environment.