TOPIC 1 - BUSS4

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Mission Statement

  • Communicates overall reason for business' existence
  • Shareholders + customers know corporate A+O
  • People t/f able to identify with vision values expressed in mission statements
  • Vision = motivating summary of what org hopes to achieve = links objectives with core values of business
  • Values are a set of ethical or operating principles that guide decision-making
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Corporate A+O

Aims = long-term goals, used to focus business in which direction want to move.

Provide framework within which objectives and strategies can be drawn up 

Measure + Monitor success

Objectives:

Set out outcomes business needs in order to achieve its aims + may relate to functions or whole business. SMART targets help business ensure progress measured & achieved

Corporate objectives = statement of quantifiable goals which help company achieve long-term goals.

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Corporate Strategies

How aims and objectives met through decisions + activities relating to all aspects of business

How to get from where it is now to where it wants to be in the future 

Will focus on SWOT analysis 

4 types of strategies (see definitions)

COGG = Operational, Corporate, Generic + Global

3 ways to achieve strategic decision-making:

Internal Development, External Growth +  Synergy - see definitions

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Corporate Strategies

Best way to set CS, consider:

Business itself - divest or get rid of some parts? Core competitors? Expand product line/innovate?

Market - expand overseas? Diversify into new markets? Is market growing or getting smaller, what can they do a/b this?

Activities involved in - too wide raning, narrower range? Widen scope = diversify? Joint ventures?

Considering above, can use operating strategies COGG, to achieve A+O

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Stakeholders Influence

Stakeholder = person/group/organisation that has an interest or concern in the business 

Shareholder = individual/institution that legally owns a share of stock in public or private corporation

Stakeholders important to business, with social media + increased information available, activities of business under constant scrutiny + business must listen to stakeholders' opinions when forming strategies + establishing corporate A+O = image/reputation

Not all stakeholders hold same amount of importance, and not same interests.

See Stakeholder + Objective Chart 

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Meeting needs of stakeholders

Difficult to meet needs of all stakeholders

Conflicts = employees + shareholders = conflict on future strategies of business = Dyson Offshoring

                Employees + customers = pay high = price of goods high = customers unhappy

If business considers opinions of all stakeholders = less efficient, loss of profit + jobs

Gov't will discourage overseas operations = increase unemployment (supportive of training + recruiting young people) - David Cameron article

Customers influence business - putting pressure on them to improve environmental or develop CSR

Creditors + Investors will need ROE, put pressure

Society put pressure due to social media 

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Purpose of A+O

  • Provide direction for org
  • Form basis for allocating resources
  • Motivatonal (towards workers)
  • Monitor Performance
  • Measure Success

Objectives may change overtime b/c

  • change original objectives 
  • may achieve original objectives
  • business grown
  • competitive environment changed
  • market + tech changes 
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Conflict with objectives

Conflict with objectives -

  • profit + growth --> expansion = costly, esp in short term 
  • Providing service + growth = larger firms struggle to provide 'personalised service'

Depends on: overall aims, analysis of bus performance + ownership (public service, private, profit and growth)

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