See URE eee hE CE Cu uc Unit 1.3 Organizational objectives Task 1: Complete the missing words ‘The of a business are its long-term goals, which stem from the organization's Hence, aims are a general statement of a firm's intentions, such as to expand into overseas mas e tendtobe____rather than quantitative in nature. atkety inte A business tends to find it difficult to satisfy all its stakeholders simultaneously due to their ow, mn objectives, For example, shareholders are likely to demand that the business aims for — employees will strive to maximise their own and benefits (thereby Potentially ego Maxi business). Meing th pti Toh Organizations are increasingly concerned with the possible impact of their actions on the enyj ‘This is largely because of the increased public awareness and concern for our planet's natural a Ment an, business activity could lead to unwanted publicity from pressure groups. Such negative exponen tment ofthe busnessand reduce cutomer___. Unethical business prot dant Ni) adversely affect the firm’s suppliers, employees, creditors and investors. Ultimately, ignoring etn Might SSSR fin setiously harm a firms profitability Hence there are ever more drivin © 24 sog businesses to behave in a socially responsible way. 8 forces Pushin SWOT analysis is a planning and decision-making tool that can help managers to reduce the making decisions. SWOT analysis involves exploring the current position of a Product, departmen, ~~ "vok organization in terms of its and and to identify potential ro the wig Itis also common to find a SWOT analysis withina_______———_plan. 2 Task 2: Match the terms Read the definitions and match them with the correct business terms from the list. below. i, | Ths declaration sets out the vision ofan organisano __|sheted purpose and direction forall those invoked n> pea This refers tothe obligations that abusinesshas tome stakeholders and society as a whole, The long-term goals ofa business that provide direction its objectives and targets, lors Aims b. | Mission statement ii, nds its | Objectives iti, d. [Social responsibility Iu.” |The medium=to long-term actions a business takesin ouey achieve its aims and objectives (what needs to be done tha” Tesourcesneeded to doit, and the timeframe in which to secon it), 2 e. [Strategy ¥. | The (very) long-term desire or aspiration of an organization ft Vision vi. | These are the medium- to long-term goals and targets ofan ‘organization, e.g. survival, diversification and growth Task 3: Odd one out Select the odd one out from each of the options below. a.__| Tactical objectives Secondary objectives Strategic objectives __ | Operational objectives b. [Growth Survival Sales maximisation ‘Acquisition «.__ [Todirect To select To control To motivate is To improve quality of To become the world’s To reduce absenteeism and | To improve product? customer service market leader labour turnover efficiency 14 ©PaulHoang 2014BRR Uren ead Task 4: True or false? True/False a. _| The overall purpose ofan organization can often be seen from its mission statement. , [All businesses have an aim to make profit for their owners ¢. | Survival is the main aim of businesses in the long term. d. | Ifa business behaves ethically its profits will fallin the short run. €. | Abusiness that adopts an ethical approach will end to improve its profits in the long run, f, | Strategic objectives refer to the general organizational objectives of a business that encompass its long-term goals. All businesses in the private sector aim to make profit whereas those operating in the public sector aim primarily to provide a service to the general public. h. | For most businesses, the objectives of shareholders are more important than those of other stakeholders. i, | Being socially responsible is the same as being environmentally responsible. J, _| Ethical corporate responsibility considers the welfare of the workforce. k. | Examples of threats ina SWOT analysis include: price wars, oil crises, recession, natural disasters and infectious diseases. 1. | The growth strategy of selling new products in existing markets is called market development. Task 5: Explain a. _why-a business might choose to act unethically. b. the purpose of producing an ethical code of practice in the workplace. ¢. why business might choose to donate money to charitable organizations. d. whether polluting the environment is legal, illegal, and/or unethical in your country. ©PaulHoang 201415roads TLS Re REC Eo UU una rocess of consultation ; €. why organizational objectives should be agreed through a p' with empio, simply being set by senior managers. ties or threats; f. whether the following factors are strengths, weaknesses, opportunities or threats: i. high gearing ii, high market share iii, reduced entry barriers to the industry Se ( {hh a Task 6: Mission, vision or objective? Choose from the following alternatives to complete the table below, + Can be changed easily * Core values and beliefs * Motivational tool for employees Specific rather than idealistic Strategic planning tool Rarely reviewed + Provides strategic direction for decision-making + Reviewed Periodically + Purpose of the organization * Source of inspiration The ideal image ofthe organization in he ne What the company aspires to be 16 © Paul Hoang 2014 eeClu ur Cy ya Task 7: The Ansoff matrix a. _Ansoff’s matrix is a framework for devising growth strategies for a business. True or False? b, Market penetration is the least risky strategy for growth. True or False? ¢. The highest risk strategy for growth is called d, Skimming as a pricing strategy is most likely to feature in which of Ansoff’s growth strategies? e. Innovation and new ideas are features of which strategy for achieving growth? f, According to Ansoff, aiming to increase market share would be a feature of which growth strategy? g. _Risk-bearing economies of scale can be enjoyed if business pursues which growth strategy? hh. ‘Buy One Get One Free’ offers will help a business to increase its market share. True or False? i, Complete the table below using the four growth strategies of Ansoff’s matrix. Markets New Existing Products Existing j. Explain why it is difficult to penetrate a saturated market k. Explain why diversification carries huge risks as a growth strategy. ©PaulHoang 201417; Pei Tg PR ner Cro uu Cue Task 8; Multiple choice 18 Objectives are ‘A. The major goals of an organization B. Whata business wants to achieve The purpose for a firm’ existence D. Qualitative statements of a firm’ strategic direction ‘What is the term used to describe what an organization exists for and what itintengs os A. Business plan Chie B. Business objectives Mission statement D. Vision statement Objectives of public sector organizations are least likely to include A. To survive B. To provide a service to the community C. Tomaximise profitability D. To break even as soon as possible ‘The declaration ofthe future identity of business is known as its A. Business objectives B. Corporate identity CG Mission statement D. Vision statement any businesses strive tobe market leaders, Which ofthe following methods is least like} objective? A. Have high labour ‘turnover to achieve th B. Maintain customer satisfaction © Maintain product quality D. Reputation for. competitive prices Objectives do not A. Help to assess the performance ofa business B. Provide a focus for the workforce C. Suggest how, goals should be achieved D. Inform strategic planning © Paul Hoang 2014SMO ur eae 7, Advantages of setting ethical objectives do not include A. Avoiding bad publicity B. A possible unique selling point for the firm C. The impact on staff morale D. An obligation to provide shareholder dividends 8, Which of the following is not an example of ethical policies adopted by a business? A. Fringe benefits offered to all members of staf B. Sponsoring charity events in the local community . Fair trading terms with businesses in less economically developed countries D. The safe disposal of waste materials 9. Businesses do not always consider acting in an ethical way. Which of the following does not explain why this might be the case? A. Ethics might not be important to the firm B. Ethical objectives often conflict with profit objectives C. There might not be any government constraints D. Compliance costs are low 10. A code of practice is not likely to include details concerning A. Statutory employment rights B. Social responsibilities C. Expectations of employees in the workplace D. Ethical marketing 11. Unethical business practices do not include A. Setting higher prices to raise profit margins B. The production of demerit products such as alcohol, tobacco and gambling C. Lending money to companies that make war weapons D. ._Deliberately using offensive tactics to market a firms products 12. What does the ‘R’ in SMART objectives stand for? . Rational A B. Realistic C. Reasonable D. Righteous © Paul Hoang 2014 1913, 15. 20 ees aE ee BRET CUCU uuu 1. Which of the following would be least likely to be considered as an Opportu: + The Ansoff matrix suggest four possible methods of growth. Which . McDonald's introduction of salads Which of the following would not be considered as a Strength in a Swoy analysise A. Ahigh staff retention rate B. Ahigh staff turnover rate . Awide customer base D. Abroad product portfolio mity in a sy A. Entering new overseas markets analy hig B.A merger with a rival firm High levels of staff motivation D. The development of new products Which of the following would not be considered as a Threat inaSWOT analysis? A. Lower interest rates in the economy B. Lower entry barriers in the industry Industrial action from the workforce D. A hostile takeover bid from another company of these is not NE of the Btowth A. Market penetration Prion B. Mergers and acquisitions © Market development D. Diversification ‘A. Market penetration B. Market growth C. Product development D. Market orientation and alternative burgers has ed it increase sales in exist kets. Whit of Ansoft’s growth Strategies does this describe? : iy en A. Market development 2 Market penetration A Product development 9 Diversification © Paul Hoang 201419. In Ansoff’s matrix, A 20. B. = D. Product extension strategies, used to prolong the demand for goods and services, are most suitable for which Market growth Market development Market planning Market penetration growth strategy? A. B. Cc D. Market development Market penetration Product development .. Diversification ____is the marketing of existing products in existing markets. © Paul Hoang 2014 Pee rn Cy Soot 21