01 mission aims-and-objectives

BUSS 4 theory

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Corporate Aims and Corporate Aims and ObjectivesObjectives

Understanding Mission, Aims Understanding Mission, Aims and Objectivesand Objectives“Organisational values’ always derive from ‘individual’s values’- especially those of the founding fathers and of the very top executives. “

SK Chakraborty

“To last, a company must strive to add long-term value rather than going for the quick buck…it must be guided by the desire for continued relations with its principal constituencies – employees, customers, suppliers, stockholders. “

Charles Koch

In this topic you will learn In this topic you will learn about:about:Understanding Mission, Aims and

Objectives

◦Mission statements

◦Corporate aims and objectives

◦Corporate strategies

◦Differing stakeholder perspectives

This follows on from BUSS3 where

you studied corporate and

functional objectives.

Syllabus AimsCandidates should understand the

purpose and nature of corporate strategies and their relationship with aims and objectives.

Within BUSS4 you will be studying large Within BUSS4 you will be studying large organisations.organisations.

To bring inspiration and innovation to every athlete in the world.

To help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.

To ensure the ability of the earth to nurture life in all its diversity.

To be the most innovative and distinctive broadcaster in the UK, to provide effective competition to the BBC, to engage and challenge audiences .

BUSS4.1 Mission, Aims and Objectives

Which organisations do you think each of these statements belong to?

Do you think these statements are a fair reflection of their actions?

Mission StatementsMission Statements“A mission statement is a brief written statement of the purpose of a company or organisation. Ideally, a mission statement guides the actions of the organisation, spells out its overall goal, provides a sense of direction, and guides decision making for all levels of management.”

Source: WikipediaWhy is it important to share a company’s mission statement

with employees?

Why is it important for managers to think back to the mission statement when making strategic decisions?

Are there any benefits of having a good mission statement?For the Board of Directors?For the shareholders?For the managers?For the workers?For the customers?For the suppliers?For the community?

Mission statement – Levi Strauss

People love our clothes and trust our company. We will market the most appealing

and widely worn casual clothing in the world. We

will clothe the world.

People love our clothes and trust our company. We will market the most appealing

and widely worn casual clothing in the world. We

will clothe the world.

Are there any benefits of having a good mission statement?It focuses your energy and clarifies

your purpose. You have to really define what you are

going to do. Should motivate board, staff,

volunteers, and donors. It also helps attract people and

resources. It will be a great public relations

tool.

Five characteristics of a good mission statement

Contains a formulation of objectives that enables progress towards them to be measured

Differentiates the business from its competitions

Defines the markets or business in which the firm wants to operate

Is relevant to all major stakeholders - not just shareholders and managers

Excites, inspires, motivates & guides

Other characteristics of a good mission statement

Brief in length

A very general statement

Flexible-should be able to accommodate change

Business specific and distinctive

Communicates key values

Realistic and achievable

Based on consultation

Supported by senior management

Criticisms of mission statementsNot always supported by actions of the

businessOften too vague and generalOften merely statements of the obviousOften seen as a PR exerciseSometimes regarded cynically by staff Sometimes not a true reflection of

realityTo mean anything they must be

supported wholeheartedly by senior management

Exam technique

BUSS4

Your Summer exam!The Business Environment and

Managing Change25% of A Level1 hour 45 minutes examination80 marks

TWO essay paperPre-release research tasks leading to an

article linked essay question.Second section will consist of choice of 3

essays, one . This is a synoptic paper drawing upon

knowledge from all four units.

EssayEssay

Starbucks’ is a leading high street coffee retailer established in Seattle in 1971 and now operating across over 40 countries. Its mission statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”

With reference to Starbucks or any other organisations you know, to what extent do you agree that a clear mission statement is crucial to the success of a business?

Essay SkillsDefine key term “Mission Statement”Give examples of good mission

statements that work / failAgree that a clear mission statement is

crucial to the success of a business – with examples of how it can help

Disagree that a clear mission statement is NOT crucial to the success of a business – with examples of how it doesn’t help

Disagree that a clear mission statement is NOT crucial to the success of a business – with examples of what is needed for a business success…

Overall, what do you think is key to business success… using the company in the essay Q.

Corporate aims and Corporate aims and objectivesobjectives

Corporate AimsThe long term targets and plans to fulfil

the mission statement

Corporate ObjectivesThe medium to long term quantifiable targets to fulfil the mission statement

Corporate StrategyThe actions to be taken by the business

to achieve

Mission StatementThe overall reason for the business’

existence

Corporate aimsCorporate aimsLong term targets of a business

◦Tend to be qualitativeProvides a direction for the

businessInform corporate objectives and

strategiesPerformance can be measured

against these aimsLook at the Coca Cola web site to see how it has taken the mission statement and translated this into visions

or aims.

Corporate objectivesCorporate objectivesMedium to long term targets of a

business◦Tend to be quantifiable

S M A R T

Coordinate functional areas within the business

Inform corporate strategyQuantifiable targets against which

performance can be measured

Main functions of objectivesA clear statement of what needs to

be achieved

A focus for all activity

Targets for individual and group achievement

A means of measuring performance

How objectives can be usedImplement the missionProvide a clear focus for decision

makingProvide a targetMotivate employeesFacilitate control of actual performanceProvide a criteria for evaluating

performanceReduce uncertaintyProvide a sense of unity

HomeworkRead The Economist article &

complete Q’s