1.

3 - Organizational Structures
1. Company Growth

2. Increase in Market Share

3. Survival

4. Customer Satisfaction

5. Employee Satisfaction

6. Sales Maximization

7. Attract Investors or Shareholders

8. Productivity

Vision and Mission Statements

Mostly 2 or 4 markers

Hierarchy of Objectives

1.3 - Organizational Structures 1

 Mission is very broad, for the future and the bottom is very detailed

Vision Statements
The outline of the organizations aspirations for the company’s future

There are very focus on the long term

A broad view of what the company wants to be

Mission statement
The declaration of

The purpose the company is there

The core values

Medium to long term

Clearly defines and realistic

1.3 - Organizational Structures 2

 Vision Statement Versus Mission Statement

Declaration on what the reason

Aspiration
What do we want to become
Versus
they want to become
The values of the business, its
Versus
belief and its core values

Not specify actual target Versus More concrete and specific

Long Term Versus Medium and long terms

Not frequently update Versus Updated frequently

What is the role of vision and mission statements to a company?

It is what defines the companies objective, why is the vision and mission statement. To
communicate the purpose of the company to stakeholders, strategy development, make
measurable goals.

To have a clear purpose

The organizations values

State the underlying purpose of an organizations existence

To make sure everyone in the company is working towards the same thing and not different
things

Common Business Objectives

Objectives

The goals and targets of an organization, gives direction and purpose to the organization

1. To measure control

2. To motivate

3. To direct

Other Common Business Objectives

1. Growth

2. Profit

1.3 - Organizational Structures 3

 3. Protecting Shareholder Value

a. Shareholders are not involved in the day to day running of company

4. Ethical Objectives

Ethical Objectives and CSR

Ethics is like morally being right, what society as a whole think what is right and wrong.

They guide in desicion making

Business Ethics are the actions business takes that is believed and considered to be morally
right

Workers

Customers

Stakeholders

Environment

Corporate Social Responsibility - Are the obligations of business who act morally towards
their shareholders

Advantages Disadvantages

Improved Corporate Image - When you act in a

Compliance Costs - The costs of being socially
morally responsible way, people will start
responsible can be more expensive
supporting them
Increased Customer Loyalty - Customers are more
Lower Profits - Costs are higher which can decrease
likely to stay with good CSR companies because
the margins on their products
they feel better buying it

Stakeholder and Conflict - Sometimes they dont

Cost Cutting - Being environmentally friendly can
reduce the cost of packaging or something.
Businesses that do CSR can save on the cost of
possible law suits that come againts them.
want the businesses to implement CSR, because all
they care about is profit maximisation, so this could
cause conflcit between shareholders and the CEOs.
They care more about the short term profits, instead
of the loing term ethical shit,

Ethics and CSR is subjective - Everyone has a

Improved Staff Morale and Motivation - Ethically
different view on what is ethical or not, which
and social companies have employees that stay with
makes it difficult to have these CSR programs,
them longer
because everyone thinks differently.

1.3 - Organizational Structures 4

 Strategies and Tactics

Strategies
Higher level version of the tactics

Plans to acheive the objectives

Specific

Medium to long term

In relation to

Their standing in the market

The image of the company

Market Shaare

Tactics
To acheive the tactical objectives

Short Term Goals, that affect a section of the organization

Goals that define the daily functioning of certain departments

Why has CSR (Corporate Social Responsibility) increased

over the years?
Bringing in ethical and environmental conditions that are related to their overall business
activity

Morally towards stake holders

It has increased more because of Media exposer

Media exposer can be more positive and negative

Customers are becoming more educated

Investors become more invovled in how the businesses are going

1.3 - Organizational Structures 5

 Interrelated forces influencing CSR
Pressure groups - They pressure the company to change, like protest, and put bad press on
the business

Corporate Culture

Societal Expectations - Before people didnt care about the atmosphere and now people do

Previous Experiences - Learning from the mistakes of the past, less likely to take risks
because of past experience

Compliance Costs - If doing the good thing is cheaper, then they will do it but is rare that it
is cheaper.

Question 3.3 - CSR at McDonald’s and Burger King

Morally Correct

1. By prioritising profits at this point, Walmart can hold a bigger more larger scale CSR
operation in the future, that can help the world become a better place. Once they have Made
enough money, they can hold bigger CSR thing.

Morally Incorrect

1. By putting profits over CSR, their reputation and image has been ruined, they have lost over
8% of their customers

Difference between Raising capital by selling shares and making a business

profits
Profit is when you sell a good or service for more than the cost to produce that good or service.
That is considered profit
When you sell shares, you are raising cash, which can be used to expand, or pay of debts or
anything, you get this by giving away a portion of your business.

You cannot make a profit by selling share, because their is no production costs.

1.3 - Organizational Structures 6

 Cash and Profit are different
When you sell shares you get cash

Completely different

1.3 - Organizational Structures 7