1.3 Business Objectives Flashcards
vision statement
long-term goal, or dream, of what the future looks like
mission statement
defines what an organisation does now to achieve goal (direct and concrete)
function of vision and mission statements
helps employees keep motivated and have goals
- central point of reference
- feel connected
value
benefit experienced by a stakeholder
value of OWNERS created FOR business
entrepreneurship, ideas, risk taking
value of OWNERS received FROM business
profits
value of CONSUMERS created FOR business
payments, verbal promotion
value of CONSUMERS received FROM business
varied goods/services, convenience
value of EMPLOYEES created FOR business
making quality products
value of EMPLOYEES received FROM business
wages, benefits
value of SUPPLIERS created FOR business
raw materials, delivery
value of SUPPLIERS received FROM business
payment for materials, long-term supply contracts
SMART targets
Specific
Measurable
Attainable
Relevant
Time-focused
CSR
corporate social responsibility
benefits of CSR
- higher revenue (consumers want businesses that align with their values)
- consumers try, stay loyal to, promote and pay extra for purpose-led products
- purpose-led businesses are more likely to recruit, retain and motivate talented workers
- protect reputation
limitations of CSR
- hard to change organisation’s culture
- may increase cost of production in short-term
- reputational risks is company doesn’t follow CSR commitments
strategy
plan an organisation created in order to reach a specific objective
- can help a business respond to external changes
linear strategies
taking resources, making products then disposing
circular strategies
outputs feed back as inputs; reducing waste
tactics
smaller actions taken by businesses to reach its goals
(smaller scale, smaller timeframe, less important)
circular supply models
- reduce material inputs (use recovered or bio-based)
- outputs feed back as inputs
resource recovery models
collecting, sorting and processing waste materials
product life extension models
extends time consumers use products
(design for durability, reuse and repair, remanufacture)
sharing models
share use with strangers
(co-ownership or co-access)
