BST- Chapter 3

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  • The Purpose of a Business
    • MISSION
      • MISSION STATEMENTS
        • The mission written down
          • Usually very brief- no timescale etc
        • A successful mission statement should include:
          • Purpose
          • Strategy
          • Policies
          • Values
        • Advantages
          • Help resolve stakeholder conflict
          • Set the direction of the organisation and so help formulate strategy
          • Help communicate the values and direction of the organisation to stakeholders
        • Disadvantages
          • Often full of meaningless and ambiguous terms
          • Often ignored by managers
          • Often considered as a PR exercise
      • Definition
        • The most generalised type of objective- the 'raison d'etre'
      • ROLE OF MISSION
        • Mission is the start point of a strategy formulation
    • ORGANISATIONAL OBJECTIVES
      • SMART
        • Specific
        • Measurable
        • Attainable
        • Relevant
        • Timed
      • PROFIT MAKING ENTITIES
        • Primary objective
          • Maximise S/H wealth
        • Secondary Objectives
          • Customer satisfaction
          • Social responsibility
          • Innovation
      • NOT-FOR-PROFIT ENTITIES
        • Primary objective
          • Maximise benefit for target S/H
        • Secondary objective
          • Investing in staff
          • Minimal impact on environment
          • Economy, efficiency, effictiveness
    • STAKEHOLDERS
      • Definition
        • Any individual with an interest in what the organisation does
      • Mendelow's Matrix
        • Identifies an appropriate response for stakeholders
          • Low interest-minimal effort
          • High interest- keep informed

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