BUSS 4 theory
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Corporate Aims and Corporate Aims and ObjectivesObjectives
Understanding Mission, Aims Understanding Mission, Aims and Objectivesand Objectives“Organisational values’ always derive from ‘individual’s values’- especially those of the founding fathers and of the very top executives. “
SK Chakraborty
“To last, a company must strive to add long-term value rather than going for the quick buck…it must be guided by the desire for continued relations with its principal constituencies – employees, customers, suppliers, stockholders. “
Charles Koch
In this topic you will learn In this topic you will learn about:about:Understanding Mission, Aims and
Objectives
◦Mission statements
◦Corporate aims and objectives
◦Corporate strategies
◦Differing stakeholder perspectives
This follows on from BUSS3 where
you studied corporate and
functional objectives.
Syllabus AimsCandidates should understand the
purpose and nature of corporate strategies and their relationship with aims and objectives.
Within BUSS4 you will be studying large Within BUSS4 you will be studying large organisations.organisations.
To bring inspiration and innovation to every athlete in the world.
To help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.
To ensure the ability of the earth to nurture life in all its diversity.
To be the most innovative and distinctive broadcaster in the UK, to provide effective competition to the BBC, to engage and challenge audiences .
BUSS4.1 Mission, Aims and Objectives
Which organisations do you think each of these statements belong to?
Do you think these statements are a fair reflection of their actions?
Mission StatementsMission Statements“A mission statement is a brief written statement of the purpose of a company or organisation. Ideally, a mission statement guides the actions of the organisation, spells out its overall goal, provides a sense of direction, and guides decision making for all levels of management.”
Source: WikipediaWhy is it important to share a company’s mission statement
with employees?
Why is it important for managers to think back to the mission statement when making strategic decisions?
Are there any benefits of having a good mission statement?For the Board of Directors?For the shareholders?For the managers?For the workers?For the customers?For the suppliers?For the community?
Mission statement – Levi Strauss
People love our clothes and trust our company. We will market the most appealing
and widely worn casual clothing in the world. We
will clothe the world.
People love our clothes and trust our company. We will market the most appealing
and widely worn casual clothing in the world. We
will clothe the world.
Are there any benefits of having a good mission statement?It focuses your energy and clarifies
your purpose. You have to really define what you are
going to do. Should motivate board, staff,
volunteers, and donors. It also helps attract people and
resources. It will be a great public relations
tool.
Five characteristics of a good mission statement
Contains a formulation of objectives that enables progress towards them to be measured
Differentiates the business from its competitions
Defines the markets or business in which the firm wants to operate
Is relevant to all major stakeholders - not just shareholders and managers
Excites, inspires, motivates & guides
Other characteristics of a good mission statement
Brief in length
A very general statement
Flexible-should be able to accommodate change
Business specific and distinctive
Communicates key values
Realistic and achievable
Based on consultation
Supported by senior management
Criticisms of mission statementsNot always supported by actions of the
businessOften too vague and generalOften merely statements of the obviousOften seen as a PR exerciseSometimes regarded cynically by staff Sometimes not a true reflection of
realityTo mean anything they must be
supported wholeheartedly by senior management
Exam technique
BUSS4
Your Summer exam!The Business Environment and
Managing Change25% of A Level1 hour 45 minutes examination80 marks
TWO essay paperPre-release research tasks leading to an
article linked essay question.Second section will consist of choice of 3
essays, one . This is a synoptic paper drawing upon
knowledge from all four units.
EssayEssay
Starbucks’ is a leading high street coffee retailer established in Seattle in 1971 and now operating across over 40 countries. Its mission statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”
With reference to Starbucks or any other organisations you know, to what extent do you agree that a clear mission statement is crucial to the success of a business?
Essay SkillsDefine key term “Mission Statement”Give examples of good mission
statements that work / failAgree that a clear mission statement is
crucial to the success of a business – with examples of how it can help
Disagree that a clear mission statement is NOT crucial to the success of a business – with examples of how it doesn’t help
Disagree that a clear mission statement is NOT crucial to the success of a business – with examples of what is needed for a business success…
Overall, what do you think is key to business success… using the company in the essay Q.
Corporate aims and Corporate aims and objectivesobjectives
Corporate AimsThe long term targets and plans to fulfil
the mission statement
Corporate ObjectivesThe medium to long term quantifiable targets to fulfil the mission statement
Corporate StrategyThe actions to be taken by the business
to achieve
Mission StatementThe overall reason for the business’
existence
Corporate aimsCorporate aimsLong term targets of a business
◦Tend to be qualitativeProvides a direction for the
businessInform corporate objectives and
strategiesPerformance can be measured
against these aimsLook at the Coca Cola web site to see how it has taken the mission statement and translated this into visions
or aims.
Corporate objectivesCorporate objectivesMedium to long term targets of a
business◦Tend to be quantifiable
S M A R T
Coordinate functional areas within the business
Inform corporate strategyQuantifiable targets against which
performance can be measured
Main functions of objectivesA clear statement of what needs to
be achieved
A focus for all activity
Targets for individual and group achievement
A means of measuring performance
How objectives can be usedImplement the missionProvide a clear focus for decision
makingProvide a targetMotivate employeesFacilitate control of actual performanceProvide a criteria for evaluating
performanceReduce uncertaintyProvide a sense of unity
HomeworkRead The Economist article &
complete Q’s
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