1.3 - Business Objectives Flashcards
Mission Statement
A statement that outlines the overall purpose of a business and what it is trying to accomplish
Tend to be more specific and detailed - Who are we?
Vision Statement
A statement that outlines the goals and dreams of the business in the future
Broad and not necessarily realistic - Who do we want to be in the future?
Pros of having mission/vision statements
- Gives direction and guides decision making and behavior
- Brand image
- Motivate employees
Cons of having mission/vision statements
- Can be too vague and general
- Could be seen as just public relations
- Time and cost involved in making them
Objective
A goal/target that the business wants to achieve
Strategic Objectives
Aims and goals og the business that are long term
Long-term strategies are then put in place to achieve these
Tactical Objectives
Aims and goals of the business that are short-term and often only include parts of the business
Short-term objectives to meet long-term objectives
Corporate Social Responsibility (CSR)
Operating a business in way that takes accounts of all parts of society and multiple stakeholders groups
Therefore, business that focus on CSR do not only focus on profit
Environmental
- Commitment to decrease carbon emissions in production
Ethical
- Paying above the minimum wage when not required to do so
Philanthorpic
- Donates to non-profit business in the local community
Economic
- Providing tuition support to employees
Pros of CSR
- Enhanced brand image
- Differentation from competitors
- Attracting and motivation EEs
- Less bad publicity
Cons of CSR
- Increased costs
- Lower profits in the short run
- Increased publicity for unethical behavior
- Consumers may see through it
Triple Bottom Line (TBL)
Bottom Line = Profit
TBL focuses on:
- Profit, People and Planet
- Economic, Social and Environment
- Profit (Economic)
- People (Social)
- Planet (Environment)
A buiness’s success is not just measured by profit but also its impact on society and the environment
