1.3 Organizational objectives Flashcards
vision statement definition
outlines an organization’s aspirations in the distant future.
mission statement definition
refers to the declaration of an organization’s overall purpose. It forms the foundation for setting the objectives of a business
Vision statement characteristics (5)
-“What do we want to become”
-Focused on long term
-Mission statements are updated more frequently than vision statements
-Do not have to be actual targets that must be achieved
Mission statement (5)
-“What is our business”
-Focus on medium or long term
-Mission statements are updated more frequently than vision statements
-Allow people to see what could be
-This tends to outline the values of the business (beliefs, etc)
what are aims of an organisation
Aims are the general and long-term goals of an organization. They are broadly expressed as vague and unquantifiable statements. They serve to give a general purpose and direction for an organization.
what are the objectives of an organisation
Objectives are the short-to-medium term and specific targets an organization sets in order to achieve its aims. They are more specific and quantifiable.
Three important reasons for having clear aims and objective
-To measure and control - set boundaries for business activity
-To motivate - reach a common goal
-To direct
what are Strategies
long-term plans of action to achieve the strategic objectives of an organization.
what are tactics
short-term methods used to achieve an organization’s tactical objectives.
what are the three of business strategy:
Operational strategies - day-to-day methods used to improve efficiency
Generic strategies - those that affect the business as a whole
Corporate strategies - targeted at the long term goals of a business
characteristics of aims (5)
-What business wants to achieve
-Not necessarily time-bound
-Vague or abstract goal
-Set by senior leaders
-What a business wants to happen
characteristics of Objectives (5)
-What the business has to do to achieve aims
-Time-bound
-Specific and measurable target
-What a business needs to happen
-Set by managers or their subordinates
Definition of tactical objectives
are short-term goals that affect a section of the organization. They are specific goals that guide the daily functioning of certain departments or operations.
They tend to refer to targets set up for months, such as:
-Survival
-Sales revenue maximization
Definition of strategic objectives
Strategic objectives are the longer term goals of a business
some examples include:
Profit maximisation
Growth
Market standing
Image and reputation
The internal factors for the need of changing objectives (7)
-Corporate culture
-Type and size of organization
-Private versus public sector organizations
-Age of the business
-Available finance
-Risk profile
-Crisis management
The external factors for the need of changing objectives (4)
State of the economy
Government constraints
The presence and power of pressure groups
New technologies
Definition of ethics
Ethics are the moral principles that guide decision-making and strategy, they define what is right or wrong from society’s point of view
Three views/attitudes towards the roles of business in delivering CSR
The self interest (non-compliance) attitude
(Generate profits for their owners)
The altruistic attitude
(Humanitarian and unselfish behaviour)
The strategic attitude
(Only be socially responsible if such actions help them become more profitable)
What are the acronym of the swot analysis
Strengths - Internal factors that are favourable compared with competitors (e.g. brand loyalty)
Weaknesses - Internal factors that are unfavourable when compared with rivals (e.g. competitive disadvantages)
Opportunities - External possibilities for future development (e.g. rapid economic growth)
Threats - External factors that hinder the prospects for an organization (e.g. technological breakdowns)
