1.3 organisation objectives Flashcards
vision and mission
vision (some day) - outlines the organizations aspirations in the distant future, where the business wants to be
Mission - outline the values of business and guides day to day activities
Aims objectives strategies tactics
Aims are generally considered to be broad and general goals that the organization would like to accomplish
Objectives are more concrete and may involve a shorter time horizon. Objectives are often measurable and time-specific, making it easy to evaluate whether they have been attained or not.
Strategy. A strategy is a plan, approach, or scheme for achieving an aim or objective. Strategies are generally considered to involve important decisions that may be risky and are taken by senior management.
Tactic. A tactic is an approach or scheme for achieving an aim or objective. Compared to strategies, tactics usually involve fewer resources and may be less risky. They may therefore not involve senior management because they can be more easily reversed or modified compared to strategies.
CSR - Corporate social responsibility
CSR:
Socially responsible organizations behave morally and ethically towards their stakeholders.
Views of CSR -
The self interest attitude - non compliance attitude
The altruistic attitude - unselfish and doing it for the good of everyone else
Strategic attitude - eyes on the big picture (brand image and publicity)
Ethics
These are the moral principles that guide decision making and strategy
Morals are concerned with what is considered to be right or wrong, from society’s point of view
Business ethics are the actions of people and firms that considered to be morally correct
Stakeholders - a party that has an interest in a company and can either affect or be affected by the business. EG community suppliers consumers government
SWOT analysis
Stands for strengths, weaknesses, opportunities and threats
helps to reach objectives, strategic planning tool
SWOT
Using SWOT businesses can create opportunities counter threats by making the most of its strength and addressing its weaknesses.
Strength: internal
Internal factors that give competitive advantages.
May include experienced management, loyal workforce
Weaknesses: internal
Internal factors that can be seen as negative within the business
May include, poorly trained workforce, limited production capacity ageing equipment or poor cash flow
Opportunities: external Advantageous possibilities identified from an external audit that examines the market a firm operates in. New technologies New export markets Low interest rates
Threats: external External factors gained from external audit New competitors entering market Globalization driving down prices Changes in economic policies
Ansoff Matrix
A management tool used to make decisions on growth strategies. It shows various strategies business can take to access new markets or release new products.
Four ways a business can expand
Market penetration
Market penetration strategy:
Selling exists products in existing markets to increase market share.
EG. Promotions of existing product to their customers
Sales
Advantages: Increase sales by growing customer base. Focusing in on what they already know Faster growth Creation of goodwill
Disadvantages:
Competitors could also lower their prices to retaliate
poor company image
Low risk strategy:
They’re doing what they’re good at
product development
Product development strategy
Selling new products in existing markets.
Apple
Advantages:
Keeping pace - helps brand stay relevant
target new markets
Expands customer base
Great advertising
Disadvantages:
Products could fail
Medium risk strategy:
Not entirely sure the product will be successful
Market development
Market development:
Selling existing products in new markets.
EG. Carrefour in Malaysia Upselling to existing customers
Attracting non-users - trial periods
New geographical markets
Advantages:
gaining new customers,
increased revenue, and
company growth.
Disadvantages:
Tarnished Product Brand
Lack of information in market
Culture unawareness
Medium risk strategy
diversification
Diversification strategy:
Selling new products in new markets
EG: A computer manufacturing company has expanded from the production of desktop computers to laptops.
Related diversification - computers and phones
Unrelated diversification- Virgin Atlantic
Advantages: create a balance for the entity Reducing losses Reducing risks More area of growth Reduces volatility
Disadvantages:
High costs - might not do well
Slow Reponses to market
High risk strategy
