1.3 Organisational Objectives

Question 1

Mission Statement

Answer 1

A statement that outlines a businesses reason for being its core values and what they do

Specific and Realistic

Question 2

Vision Statement

Answer 2

A statement that outlines the aspirations and goals of a business

Broad and not necessarily realistic

Question 3

Aims and Objectives

Where we wanna go

Answer 3

Aim:
Long term goals for whole business
Set by senior leaders
General and broad - aimed at all in the organisation

Objectives
Short to medium term goals
Specific and timely
Different for each department/ division
Set by department
Set inorder to meet goals

Question 4

Strategies and Tactics

How do we wanna get there

Answer 4

Strategies:
Long term plans of action to achieve aim
Taken by senior management
For all departments

Tactics:
Short term
To solve a problem
Or achieve a part of the strategy

Question 5

Ethical Objectives

Answer 5

Ethics are moral/ principle guidelines that guide decision making

Question 6

Corporate Social Responsibility (CSR)

Answer 6

Consideration of ethical and environmental practices on society and business practices.
Acts morally towards shareholders

Question 7

Code of conduct

Answer 7

A document showing beliefs and philosophies of a business

Question 8

Social Audit

Answer 8

A report on the impact a business has on society

Question 9

Factors influencing CSR

Answer 9

Society changes over time
- Customers like organic food

Awareness of discrimination
- Attitude of hiring minorities

Power of pressure group
- new pressure group formed on global warming

Country of operation
- Supermarket moves to a more country more concerned with ethics

Government regulation
- minimum wage, tobacco advertising

Question 10

SWOT

Answer 10

Strength
- Current Internal things which are favourable compared to rivals
- E.g. strong brand loyalty

Weakness
- Current internal things that are unfavourable compared to rivals
- E.g. high labour turnover

Opportunities
- Possible future changes in external environment that create possibilities got future development
- E.g. new consumers in China

Threats
- Possible external changes in external environment that may hinder future development
- E.g. recession, product recall

Question 11

Pros and Cons of SWOT

Answer 11

Pro
Quick and easy
A good starting point to formulate strategies
Can see the organisation’s position in the market

Cons
Simplistic
Just a starting point
Requires objectivity with weaknesses

Question 12

Ansoff matrix

Answer 12

Tool showing different possible growth strategies for a firm

Options:
A firm can sell:
New or Existing products
In New or Existing markets

Question 13

Ansoff matrix segments

Answer 13

Market Penetration
- Sell existing products in existing market
- Sell more of existing products
- Low Risk

Market Development
- Selling existing products in new markets
- Attracting new customers to the market

Product Development
- Sell new products in existing markets

Diversification
- Selling new products in new markets
- High risk

Related Diversification
- E.g. EasyJet expanded from flights into car rental in 2000

Unrelated Diversification
- E.g. Virgin expanded from music (Virgin Records) into airlines, banking

Question 14

Ansoff Matrix Pros and Cons

Answer 14

Pro
- Allows manager to see all decisions available
- Can take risk into account
Market Penetration - Low risk
Market and Product Development - Medium-risk strategy
Diversification – High Risk

Con
- Only two choices
- Does not give specifics
- Competitors are ignored