Chapter 2 Flashcards
What is a mission?
Fundamental objective of an entity expressed in general terms
Basic purpose of organisation
What is a mission statement?
Published statement of fundamental objectives
What are the fundamental questions for a mission statement?
What’s our business?
What’s valued by customers?
What will our business be?
What should our business be?
What are the purposes of a mission statement?
Communicate to all stakeholder groups
Help develop a corporate culture
Asssist in strategic planning
What are the criticisms of mission statements?
May not represent values of organisations
Often vague
Often ignored
Quickly outdated
What is a vision statement?
Identifies ideal position that company wants to reach within the medium to long term
Longer term aspirations
What are values?
Core ethics or principles which company will abide by
What are the purposes of a vision statement?
Guide staff behaviour
Demonstrate integrity and accountability to external stakeholders
Set organisation apart from competitors
Reduce risk of inapproprate behaviour
Set culture of organisation
What does SMART stand for when setting objectives?
Specific
Measurable
Attainable
Relevant
Timely
What are some key issues with objectives?
Difficult to prioritise multiple
Some are hard to quantify
Mixture of financial and non-financial
What are primary objectives?
Major, overriding objectives of the organisation
Relate to organisation as a whole
What are secondary objectives?
Relate to various strategies that organisations need to adopt in order to meet primary objectives
What two interest do we have in mind when setting mission and objectives?
People who carry them out e.g. managers and staff
Those who focus on outcome e.g. shareholders, customers and suppliers
What is a strategic network?
Collection of organisation that work together to achieve a long term strategic advantage
What is a strategic platform?
Means by which transfer of goods or services between provider and consumer can take place
