1.3 Organizational Objectives Flashcards
Vision statement
A statement of the organization’s long term aspirations and what it would like to achieve or accomplish
Mission statement
A statement of the business’s core aims and overall purpose, phrased in a way to motivate employees and stimulate interest by outside groups
Aim / Strategical objectives
The long-term goals a business hopes to achieve (vague, qualitative, set by senior directors)
Tactical objectives
The medium-term action plans to achieve the strategic objectives of an organization, set by middle management
Operational objectives
The short term, day-to-day action plans to achieve the tactical objectives, set by lower management
Why would organizations need to change objectives?
Changes in the internal environment: leadership, HR, corporate culture, finances available
Changes to the external environment: state of the economy, government constraints, new technology, ethics (presence of pressure groups)
Ethical Objectives
Goals based on an established moral code of behavior for the business
Corporate social responsibility (CSR)
Businesses that accept its moral obligations to stakeholders other than investors and takes responsibility for the impact of their decisions on customers, employees, and the environment
SWOT Analysis
A form of strategic analysis that identifies the main internal strengths and weaknesses and external opportunities and threats to determine their current market position
Ansoff Matrix
A model used to show the degree of risk associated with the four growth strategies: market penetration, market development, product development, and diversification
Market penetration
The least risky growth strategy involving the sale of existing products in existing markets to achieve higher market shares through competitive prices and improved advertising
Product development
The growth strategy involving the sale of new products or developments of existing products in existing markets often involving a form of innovation
Market development
The growth strategy involving the sale of existing products in new markets or new market segments in the existing market
Diversification
The riskiest growth strategy involving the sale of new goods or services in new markets. Diversification may be unrelated, taking the business to a completely different industry, or related, backward/ forward integration in the existing industry
