7.1 Mission Statment Objectives And Strategy Flashcards
Mission statement
The reason for a firms existence.
What it believes its values and which market it wants to compete in.
Example of mission statement: John Lewis
Owned by its employees called “partners”
Mission statement focuses on staff “ the happiness of all our members through their worthwhile satisfy and employment in a successful business”
Purpose of setting a mission statement
-everyone in the Buisness knows what they should be trying to do
-actions directed to achieve mission
-quicker decision making
-motivated employees
Mission statements need to try to:
Be clear
Be concise
Plausible and attainable
Inspirational
Informative
Welcome participantion
Reviewed frequently
Corporate aims
Long-term plans which corporate objectives are derived.
Provide guidence for:
-functional objectives
-managers in decision making
Corporate objectives
Medium to long term goals established to coordinate Buisness
Should be turned into something more quantifiable and SMART
Internal influences on corporate objectives
-finance: can they afford to implement strategies
-experience/knowledge: do they have this to implement strategies
-view of senior manager: are they risk averse?
-HR issues: how will staff respond to change in strategic decision will jobs be threatened?
-operational issues: do they have the technological equipment machinery etc.
External influences on corporate objectives
-competition: how will they respond
-political+legal: competition commission
-social: do social trends match the objectives being set?
-economy
Market standing
Beleiving Buisness operates as force for good.
Short termism
Some companies only focus on short term. Companies spend less on growth and development so cash flow and profits look healthy for stakeholders.
Corporate strategy vs tactics
Strategy- long term plan to achieve objectives may involve significant reasources.
Tactics- term used to describe smaller decisions/ action a firm will use when putting strategy in place.
Link between mission corporate objectives and strategy.
Mission statement—> corporate aims—> corporate objectives—> functional objectives
Strategic desicion making
Taken first with functional decision to support them.
SWOT analysis
strengths - strong brand identity, high staff morale
Weaknesses- low productivity, poor cash flow
Opportunities- changes in tech, social patterns
Threats- economic recession, legislation
Why use SWOT?
-build on strength
-resolve weakness
-exploit opportunity
-avoid threats
