- 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
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
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.
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
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
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
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
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
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)