Aims and Objectives

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

How do Vision Statements differ to Mission Statements:

  • a vision statement describes where the company aspires to be upon achieving its mission

A Vision Statement focuses on tomorrow and what an organisation wants to ultimately become

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

A Mission Statement is a formal summary of the aims and objectives of a business

A Mission Statement focuses on today and what an organisation does to achieve it

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

Objectives should be SMART - short term goals (under 12 months)

  • e.g. to increase profits by 20% over the next 6 months

S - Specific
M - Measurable
A - Achievable
R - Realistic
T - Time-bound

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)

(Purpose of the business)

  • a formal summary of the aims and objectives of a business - the overall purpose of the business

(What do you want for the future)

  • it is the vision for the future (mid-long term) - where do we want to go?

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

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

Long term

Defines the organisations business, its objectives and how it will reach these

Really Long term

Details where the organisation aspires to go

Roles of a mission statement - to state why an organisation exists

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