1.3 Organisational objectives Flashcards
A vision statement
A vision statement is a written expression of an organisation’s long-term ambitions that it hopes to realise in the future. It is often an optimistic view of what the organisation hopes to accomplish.
A mission statement
A mission statement is a written expression of an organisation’s purpose and reason for being. The mission may be seen as a means of accomplishing the organisation’s vision.
Aims
Aims are goals an organisation would like to accomplish. They may be somewhat broad, optimistic and imprecise.
Objectives
Objectives are concrete targets an organisation sets for itself. They may be formulated in order to accomplish wider aims, and can be developed using the acronym SMART.
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.
Corporate social responsibility
refers to corporations’ obligations to society at large as well as the environment. Companies that take their CSR seriously do not limit themselves to simply obeying laws and regulations. Instead, they are proactive in seeking ways to improve society through their business activities. Setting ethical objectives is an important component of developing CSR policies.
CSR policies often involve areas such as
Labour relations, Environment, Community, Supplier relations
The reasons why organisations set ethical objectives and the impact of implementing them
-Developing a talented and productive work force.
-Improving marketing
-Preparing for the future
-Avoid damaging publicity
Market penetration
The market penetration strategy involves selling more of the same products and services to pretty much the same customers, or at least the same types of customers. The market penetration strategy is usually considered the least risky growth strategy as it often does not entail making large investments
Product development
Product development involves selling new products in the organisation’s existing market, often to existing customers. In the example of our bakery, product development might involve selling cakes, sandwiches or beverages to complement the simpler baked goods. Product development usually involves some risk because it requires investment in time and resources to carry out.
Market development
Market development involves selling existing products to new customers.Market development is also considered more risky than a penetration strategy, as the organisation may not understand the needs of the new customers and its offerings might not be adapted to the new market.Market development strategies often involve a new geographic market, such as moving to a new neighbourhood, or a new town, or even a new country.
Diversification
Diversification is considered the most risky growth strategy, as it involves selling new products in a new market. The business is thereby getting involved in an activity of which it has little knowledge and as a consequence there is more potential for making costly mistakes.
