ITPEC IP October 2018 Question 66

The fundamental concepts stating why the company exists and what it values — the corporate philosophy, which guides all business activities.

A corporate (management) philosophy expresses the company's purpose, its reason for existing in society and the values it holds. It changes rarely, and it sits at the top: the vision describes the future the company aims for in line with it, and strategies and plans set out how to get there. Employees use it as the guideline when deciding how to act.

Answer (a)

Why not others:

• •(b) — people, money, materials and information are the management resources a company uses
• •(c) — long-, mid- and short-term plans for realizing the vision are management plans (strategy), which come below the philosophy
• •(d) — a company's characteristic style built up over years of business is its corporate culture

Key rule: Philosophy (why we exist) → vision (where we want to be) → strategy and plans (how to get there), carried out with management resources.

Corporate Activities · AI-written, may contain errors