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Organizational Objectives Chapter 3, Existing market Existing product,…
Organizational Objectives Chapter 3
SWOT analysis
Decision-making tool
What it is
Can be used to:
Analyse competition
Asses opportunities
Asses risks
Review strategies and plans
Strengths, weaknesses, opportunities, threats.
Stands for
Strengths
Internal, favorable factors in comparission wth competition
Brand royalty
Weaknesses
Internal, Unfavorable factors in comparassion with competition
Poor marketing
:Opportunities
External factors favorable to the company
Reduced taxes
Threats
External factors Unfavorable to the company
Natural disaster
Ansoff Matrix
Analytical tool to choose and devise
various product and market growth strategies
4 Types of product-market growth strategies
Ethical Objectives
Morals
Decide what is right or
wrong according to society
Busness ethics
Actions of the people and organization considered morally correct
Will act morally towards shareholders, workers, customers, and the environment
This is the CSR, corporate social responsability
3 ways of the business delivering it
Strategic attitude
Only do these actions if its profitable for the business
Altruistic attitude
Humanitarian and/or unselfish behavior
Self-intterest attitude
Moral acts done because the business truly believes in them
Advantages
Improved corporate image
Improved customer loyalty
Sometimes cost cutting
Improved staff motivation
Disadvantages
Compliance costs
Sometimes lower profits
Subjectivity of Ethics
Shareholder's ideals conflict
Code of conduct is a document with beliefs, values and philosophies of a company
Changes in society's morals
directly affect a company's CSR
In order to meet these societal morals, a business might
Environmental consciousness
Fair employment practices
Active community work
Providing accurate info and labeling
Companies however may be limited by factors such as:
Involvement of different shareholders and pressure groups
Societal expectations
Government laws and regulation
Extra costs
Taking bad esperiences to properly enforce CSR
Social media
Might be imposed upon by External or Internal factors
Hierarchy of objectives
Strategies
Actions to take in order to achive objectives. Often short-term
Operational strategies
Day by day methods to improve efficiency
Generic strategies
Affects the entire business
Corporate strategies
Targeted at long-term goals of the business
Strategic objectives/goals
All of the strategies are used to achieve the strategic goals
Over time, those strategic goals changes due to several factors
External factors
State of economy
New technologies
Pressure groups
Internal factors
Finance
Type and size of an organization
Age of business
Crisis management
Corporate culture
Tactical objectives
Short term goals that affect sections of an organization
Tactics
Short-term methods used to achieve tactical objectives
Guide daily functions of certain departments or operations
Objectives
Goals of an organization, in order to achieve its aims
These objectives need to follow SMART
A
greed
Everyone involved needs to agree with
R
ealistic
Take in consideration several factors: resources, market, competition, and others
M
easurable
Quantitative, needs to be clear when its achieved
T
ime-specific
State when it needs to be achieved
S
pecific
State exactly what it wants to achieve
Aim
General and long-terms of an organization
Often expressed in a mission statement
They are all interdependent.
Vision statements
Pictures the ideal situation of the company
in the future
Very long term, so they are not updated frequently
Can be time-consuming to create, but helps to provide a sense of direction, guides decisions,
What do we want to become?
Mission statements
Depicts the purpose of the business together with core values, beliefs, and principles
Medium to long term, so they are updated more frequently than vision statements
What is our business
Existing market Existing product
Penetration
How it is done by a business
Improved advertising
Offering competitive prices
Advantages
Safe
Market research budget minimized
Business is familiar with market and product
Disadvantages
Once saturated, new strategies must be created
Low risk
examples
Famous athletes marketing existing Nike's products
Coca Cola's holiday marketing
Existing market new product
Product development
Disadvantages
Competition
Can have extra costs
How its done by a business
Prolong demand for products that have reached saturation
Acquisition of other companies to have product variety with established brands
Product extension strategies
Advantages
Established brands have a higher chance of success due to existing market
Example
New McDonald's menu items
Medium risk
New Market Existing product
Market development
How it is done by a business
New marketing strategies
Price adjustments
New distribution channels
Disadvantages
Capital investment from company
Competition with estabilished market in some places
Advantages
Business is familiar with the product
Medium risk
Examples
Pepsi black (appeal to a new audience)
New product new market
Diversification
High risk
How does a business do it
Holding companies
Control interest of other companies/ have control of them
Investing in new developing strategies
Advantage
Can have new opportunities of growth when saturation is reached
Examples
Johnson&Johnson has several different products
Disadvantage
High chance of failure
What it is
Stronger competitors will retaliate
