Please enable JavaScript.
Coggle requires JavaScript to display documents.
1.3: Organisational Objectives (Changing objectives (SWOT analysis (S =…
1.3: Organisational Objectives
Mission & Vision Statements
mission statement
: buisiness´s core aims
motivate employees
stimulate interest by outside groups
overall purpose
"who we are" & "what we do"
Three key questions
What do we do?
For whom do we do it?
What is the benefit?
vision statement
: what the organisation would like to achieve
long term
prefered future
Aims, objectives, strategies & tactics
Coporate aims
: long-term goals
customer-based goals
market-based goals
guidance to whole organisation
help sense of purpose
framework for strategies
Operational objectives
: short or medium-term goals
direct, control and review the success
SMART
S - Specific: focus on business
M - Measurable: have a quantitative value
A - Achievable: impossible targets are useless
R - Realistic & Relevant: realistic compared to resources; relevant to people who are doing them
T- Time-specific: set time limit
Management by objectives
(MBO)
Aim
Corporate objectives
Divisional objectives
Departamental objectives
Individual targets
strategy
: long-term plans of action
long term
difficult to reverse
cross-functonal
tactic
: short-term decision, resolve particular problem
short to medium term
reversible
often only one department
Corporate aims
Profit maximisation
greatest positive difference between
total revenue
and
total costs
may lead competitors into market
constant changes to prices may lead to negative consumer react
Profit satisficing
achieve enought profit to keep owner happy
obective of small businesses
Growth
benefits for managers & owners
no growth, no appeal to new investors
may lead to cash flow problems
Increase market share
linked to overall growth
loss of market share if markets grows faster than business
Survival
key objective
important aim for enterpreneurs
Maximising short-term sales revenue
benefit salaries if they are dependant on revenue levels
Maximising sahreholder value
increase share price
public limited companies
Ethical objectives
based on moral code
ethical code
: doc with company´s rules on behaviour
can be expensive in the short-term
benefits in the long-term
avoid court cases
good publicity & increased sales
attract ethical consumers
Corporate social responsability (CSR)
focus on social responsabilities
stakeholders
: people affected & interested in action by an organisation
deal with environmental issues
air & noise pollution
road congestion
emissions of gases
use of non-renewable resources
cross over with ethical decisions
public responsability
greenwash
: business claims to oprate in resposibale ways but it´s a lie
Changes in corporate resposability
determined by societal norms
focus on stakeholders
CSR & corporate strategy changes
Measuring CSR
social audit
: independent report on the impact of business in society
health & safety
pollution levels
sources of supply
customer satisfaction
contribution to community
how ethical behaviour matches to ethical objectives
social audit may contain
annual targets
details of policies
Conflicts between objectives
growth VS profit
short-term VS long-term
stakeholder conflicts
Factors
corporate culture
: way of doing things shared by all in the organisation
size & legal form
public or private sector
well-established business
Changing objectives
internal factors
external factors
satisfied previous objectives
change of manager
competitive & economic environment change
replace short-term with long-term
don´t change too dramatially or frequently
SWOT analysis
S = stengths
: internal factors to use as advantages
W = weaknesses
: internal NEGATIVE factors
O = oportunities
: external factor; potenetial areas for expansion
T = threats
: external factors; analyse economic environment, market condition & competition strenght
SWOT strategic objectives
find good fit between strengths & oportunities
may need to overcome weaknesses
SWOT evaluation
is subjective
not quantitative
used as only a guide
Ansoff´s matrix
model used to show degree of risk
associated with four growth strategies
portray corporate growth strategies
two main variables
the market
remain in existing market
enter a new market
the product
sell existing products
develop new products
Market penetration
: sell more in existing markets
least risky
market & product parameters stay the same
Product development
: sell new products in existing markets
involves innovation
Market development
: sell existing products in new markets
include exporting
appeal new range of consumers
Diversification
: sell new products in new markets
seek new areas of growth
related diversification
less risky
unrelated diversification
takes business into different industry
MOST risky of all four
busnisses that consider the interests of society
Cecilia Martínez A01197738