206 aims and objectives

Question 1

what is a vision statement

Answer 1

is a decription of what a business sets out to achieve in the medium to long term (1) it should provide a clear guide of the future direction if a business to seniour management (1)

Question 2

benifits of haviing a vision statement

Answer 2

• helps setting objevtives and supports business startergy
• communicates to employees how they can contriute and can imporve employee motivation
• allocates resouces more efficiently
• engages customers to puchase from the business ad become brand loyal.

Question 3

benefits of clear vision statement to shareholders

Answer 3

-customers-> they know what to expect from the business-know brand idenity

-shareholders->engages shareholders as they have confidence of their long term visions. (security of investments) as they are supported with more detailed information

-managers-> better decision making- purchase only what fits into the vision, claitry on which tasks to assign

-employee-> more motivation- all working towards common goal- feel like they have purpose

Question 4

what does a useful vision statements depend on

Answer 4

• depends on if the vision statement is realistic and acsesible- leads to demotivation
• depends on the clairity- can be hard and vauge o understand especially to employees
• depends on how accesible the vision statement is- many external stakeholders don’t see it
• depends on how actively the business makes decsions to a chieve the vision , if not stakeholders loose trust and brand reputation is harmed

Question 5

what is a mission statement

Answer 5

• a broad statement of it’s aims and values (1). it will guide the everyday operations and decsion making of the business (1)

Question 6

reasons for having a mission statement

Answer 6

• ensures all employees ae clear on the purpose of the business- focused on the same goals
• helps with stategic planning
• gives transparancy for investors/shareholders- understand hw thier capital will be used
• helps customers understand ethics and objectives of a comany

Question 7

advantages of a mission statement (+)

Answer 7

• employys useful- guidance with their day-to-day tasks
• managers useful- guides eevrday decsion making and actions
• gives business clear goal for everyone to work towards

Question 8

disaddvantges of a mission statement (-)

Answer 8

• may only be useful for internal stakeholders eg.managers as they are the ones that impliment it within the everday work of the busines s
• might not carry huge importance- oftern vauge and expess aspiration rather than reality- oftern never achieved

Question 9

what does (+)/(-) of vision statement depend on

Answer 9

whether the mission and values are truely lived out in all decisions within the originisation and not just a wish that is forgotten about

Question 10

what are SMART objectives

Answer 10

Specifc->. should specify what the business wants to achieve- clear so stakeholders undertand what the objective is
Measurable-> mesured to make sure the objective has been achived, numericial
Achievable-> if unrealitic- demotivating
Realstic-> is the business likley to achieve its objetives with the resources available?
Time-> timescale needs to be set for achieving objectives

Question 11

why are SMART objectives useful

Answer 11

• more percise than normal objectives, more quantifiable,- more easy to monitor performace
• enable feedback and learning within the. orginisation- management can monitor achievement and make changes where necassary