Organisational objectives 3 On completing this chapter you should be able to: Know and understand

ACTIVITY 1.3.7
PEUGEOT CITROËN SET CLEAR OBJECTIVES
The chairman of the car manufacturer Peugeot Citroën has set the company the aim 
of becoming the ‘most competitive carmaker in Europe in 2015’. This overall aim is 
supported by more specific and measurable objectives. The profit margin of each car 
sold is targeted to increase from 2% to 7% by 2015. The overall sales objective was to 
reach four million car sales a year by 2010. One million car sales are aimed for in the 
 
Air pollution is one way in which business activity can damage the environment: should companies be 
forced to use cleaner production methods?

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Business organisation and environment
54 
1.3
SWOT analysis
A 
SWOT analysis
provides information that can be helpful in matching the 
fi
rm’s 
resources and strengths to the competitive environment in which it operates. It is, 
therefore, useful in strategy formulation and selection. It comprises:
• 
S = strengths
These are the internal factors about a business that can be looked 
upon as real advantages. These could be used as a basis for developing a competitive 
advantage. They might include experienced management, product patents, loyal 
workforce and good product range. These factors are identi
fi
ed by undertaking 
an internal audit of the 
fi
rm. This is often undertaken by specialist management 
consultants who analyse the e
ff
ectiveness of the business and the e
ff
ectiveness of 
each
of its departments and major product ranges.
• 
W = weaknesses
These are the internal factors about a business that can be seen as 
negative factors. In some cases, these can be the 
fl
ip side of a strength. For example, 
whereas a large amount of spare manufacturing capacity might be a strength in times 
of a rapid economic upturn, if it continues to be unused it could add substantially to a 
fi
rm’s average costs of production. Weaknesses might include: poorly trained workforce, 
limited production capacity and ageing equipment. This information would also have 
been obtained from an internal audit.
•