1.3 Organizational Objectives Flashcards
what is a mission statement?
is where an organization formally sets out and publicizes its core objectives
what is a vision statement?
is where an organization sets out where it would like to be in the long term based on its core objectives
what are the aims of vision and mission statements?
- give strategic decision-making an overall sense of direction
- provide employees & managers with a sense of strategic direction of the business
- motivates employees & managers within the business & provide them with a reference point for their own aims and values
- attract outside stakeholders such as customers, banks, and investors to an organization
what’s the difference between a mission statement and a vision statement?
a mission statement is an inspiring statement that provides the stakeholders with the business’s purpose and what it wants to achieve in the future. On the other hand, a vision statement is a more concrete and tangible statement of what the business wants to do now.
what are the common business objectives?
Survival/ Breakeven Cost minimization Growth (market share) Profit maximization Profit satisficing (achieve enough profit to make the owner happy but not making a maximum profit)
Define aim, objective, strategy, and tactics.
Aims: long-term goals that a business wants to achieve in the future
Objectives: targets set by an organization to achieve its corporate aims
Strategy: the long-term plan that sets out the ways a business is going to achieve its corporate aims
Tactics: the specific techniques used by a business to archive its objectives
List reasons as to why businesses might change their objectives:
- Internal changes in ownership and management
- A business may have satisfied the survival objective and now needs to pursue objectives of growth to increase profits
- Political change: government policy and laws
- Economic change: the economy fluctuates
- Social change: consumer tastes and preferences
- Technological change: advances in technology
define what an ethical objective is.
it’s a business objective influenced by moral values. Reflect ethical positions and moral issues of stakeholders.
define corporate social responsibility (CSR).
is where the organization considers the interests of society by taking responsibility for the effects their decisions and activities have on customers, employees, communities, and the environment.
list advantages of CSR:
- drives innovation as a business develops products and systems to be socially responsible
- attracts consumers to buy products and increase sales
- strengthens a business’s brand image
- attracts employees and investors
- has favorable tax advantages and government grants are available
list disadvantages of CSR:
- it can increase costs ($$$)
- if businesses do not meet their ethical standards, it damages brand image
- it can lead to a conflict with some stakeholders who might see profits reduced by ethical objectives
what are some examples of objectives?
- reducing pollution by using more environmentally friendly production processes
- disposal of waste in an environmental manner
- increased recycling of waste materials
- offering staff sufficient rest breaks during work
- fairer conditions of trade with less economically developed countries
what are some examples of unethical behavior?
- financial dishonesty
- environmental neglect and damage
- exploitation of the workforce
- exploitation of suppliers
- exploitation of consumers
how can businesses adapt to their social responsibilities?
- providing accurate information and labeling
- adhering to fair employment practices
- having considerations for the environment
- active community work such as sponsoring or participating in local community events
what is SWOT analysis?
a planning tool used by organizations as a method for guiding business strategy by considering the Strengths, Weaknesses, Opportunities, and Threats the businesses faces.
