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Aims and Objectives - Coggle Diagram
Aims and Objectives
Mission Statement:
- a mission is the overall reason for a business' existence
- it is the main purpose of a business and therefore determines the business' strategic position
- it provides a common focus for everyone and hence a common sense of direction
- it is a written statement that states its purpose
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(Purpose of the business)
- a formal summary of the aims and objectives of a business - the overall purpose of the business
Influences on the mission of a business:
- personal beliefs, values and objectives of the leaders/ founders
- business ownership e.g. sole trader or company
- values and relative power of stakeholders
- nature of the industry
- degree of competition
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Defines the organisations business, its objectives and how it will reach these
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Vision Statements:
- provides a sense of direction
- informs core values and strategic decision making
- helps improve employee engagement
- can be incorporated into a business' marketing to influence the consumers' perceptions
- the vision statement will only be achieved if shorter-term aims are clearly focused on achieving the longer-term objectives
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(What do you want for the future)
- it is the vision for the future (mid-long term) - where do we want to go?
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Influences on vision statements, objectives and mission statements:
Internal influences:
- mission statement
- leaders' personal objectives and values
- performance
- organisational culture
- internal stakeholders
External influences:
- external environment - PESTEL
- investors' objectives
- competitive environment
- global markets
- external stakeholders
Impact on a business:
- marketing - researching into new markets, product development
- finance - raising finance to support growth, proportion of long term funding that is debt
- operations - relocating production abroad, outsourcing
- human resources - delayering or rationalisation, core or peripheral workers
Objectives should be SMART - short term goals (under 12 months)
- e.g. to increase profits by 20% over the next 6 months
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How do Vision Statements differ to Mission Statements:
- a vision statement describes where the company aspires to be upon achieving its mission
Aims = long term BIG goals (12 months and over)
- e.g. to increase market share and become the market leader in the next 1-2 years
- e.g. to diversify into the mobile phone market in the next 12 months
The Purpose of Objectives:
- common sense of purpose
- motivate employees
- create reward systems
- measure and review performance
- inform decisions to improve performance
Corporate Aims and Objectives:
- vision and mission statement (the overall reason for the business' existence and future aspirations)
- corporate aims (the long term targets and plans to fulfill the mission statement)
- corporate objectives (the medium to long-term quantifiable targets to fulfill the mission statement)
- corporate strategy (the actions to be taken by the business to achieve its objectives)
Impact on Stakeholders of Vision and Mission:
- shareholders - increased dividends of vision/ mission is achieved
- employed - may motivate them if they believe in statements
- customers - may make them want to buy products if they won't be treated like 'family'
- suppliers - increased sales because of a business decision will lead to higher business for suppliers
Aims and Objectives:
- vision and mission statements - the overall reason for the business' existence and future aspirations
- corporate aims - the long term targets and plans to fulfill the mission statement
- corporate objectives - the medium to long term quantifiable targets to fulfil the mission statement
- corporate strategy - the actions taken by the business to achieve its objectives