1.

3 ORGANISATIONAL
OBJECTIVES

Unit 1
Business Organisation & Environment

LO: To Define the three types of objective a business can have.

Vision & Mission Statements
A vision statement is a forward looking statement outlining the
long term goals of the business

A mission statement is grounded in the aim of achieving short

term objectives to meet these long term goals – it can be
described as the stepping stones to achieving the overall vision

The vision statement should be written first

Vision
What do we want?
Inspires and motivates
employees
Binds stakeholders by shared
beliefs and values
Vision should never change
Mission
 Why are we doing what we’re
doing?
 What needs to be done in order
to achieve the vision from where
we are now.
 Accountability and a measure of
success
 Mission may change under
certain circumstances.
 You might be aiming for a grade
7 in IB Business Management.

Task! What might your personal

vision statement be?
What might your personal
mission statement be?
 Business Objectives
There are 3 main business objectives ent
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1. Strategic Objectives – usually long term (5+ years)

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2. Tactical Objectives – Medium or Short Term goals a n age
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3. Operational Objectives – Day to day goals Floor Fmloor

anamgearns agers
 To hire and retain enough
salespeople so that the
dealership has sufficient
sales people to serve To have the
customers at all times highest
To have the market share
average amount of car
of time a dealerships in
customer waits the city
to be treated as Identify if each
less than 2 mins objective is strategic,
tactical or
operational.
 Tactical
Strategic
To hire and retain enough
Operational salespeople so that the
dealership has sufficient To have the
sales people to serve highest
To have the market
customers at all times
average amount share of car
of time a dealerships
customer waits in the city
to be treated as Identify if each
less than 2 mins objective is strategic,
tactical or
operational.
SMART objectives
Specific – objectives are clear and well defined, it should outline exactly what the business hopes to

achieve – increase sales or increase target market etc

Measurable – The objective needs to be measurable so you can see if it has been achieved or not e.g. Increase sales by

10% rather than increase sales by a lot.

Achievable – is it possible for the company to achieve this objective/goal – is it realistic? e.g. 10% rather than 70% in a

short time period.

Relevant – are the objectives focused on the core activities of the business. Objectives may be different for different

departments.

Timed – has a sufficient time frame been set, deadlines etc. e.g within 6 months.
Objective: Increase sales of Sour Cream flavour Pringles by 15%
before 31st December 2018.*
 Plans to achieve objectives
Strategy- to
Strategies achieve
and strategic
Tactics
Who objectives
What Tactics- to achieve tactical
objectives
When
Where
Why
TASK
* Strategies are more important than tactics..
Do you agree with the statement? Why?
27/09/2017
Title: Organisational Objectives

•LO: Explain why organisations change

objectives and outline reasons why
businesses set ethical objectives.
BOOK FOR SALE
Abdelrahim Shaaban G12 is selling his Business Management book!

This Photo by Unknown Author is licensed under CC BY-NC

 Why may a business need to change its objectives?

Leadership Product Social Ethical

HR Finance Technological Political Ecological

Organisation Operations Economic Legal

Jigsaw
• Groups of 3/4
• Research using the book and outside resources why
objectives need to change in an organization. As a group
become experts on each need you have been assigned.
• When we have all become experts, each individual will
teach a group about what they have learnt.
What factors does
STEEPLE include?
 Politcal
Social Technological
What factors does Legal
STEEPLE include?
Environmental/ Ethical
Ecological Economic
Plenary
Complete a
poster of a
STEEPLE
analysis for
UBER
29/08/2017
Organizational Objectives

•LO: Analyse the use of business tools in

the creation of business objectives
CSR & Ethics

1. CSR stands for Corporate social responsibility

2. Ethics is the practice of ‘doing the right thing’

Both CSR & Ethics focus on companies being socially responsible

and acting in a manner than benefits society as a whole – acting
as role models.

https://www.youtube.com/watch?v=xoE8XlcDUI8
Ethical Objectives because of:

• Building consumer loyalty

• Creating a positive image
• Developing a positive work environment
• Reducing the risk of legal redress
• Satisfying customers ever-higher need for ethical behaviour
• Increasing profits
 Impacts of acting ethically for a business
•Short term costs may rise, employees may resist change
•Competitors may respond with likewise initiatives
•Suppliers may have to be changed/ suppliers will have to become
ethical if not already
•Customers will respond with brand loyalty
•The local community will respond positively and form a good
relationship
•Government should respond positively
 Good ethical behaviour can act
favourably for a company and poor
ethical behaviour can have negative
effects on a company – Discuss?
CSR is broader A company committing to CSR is
and less specific intending to act as a good “corporate
than ethical citizen”
objectives
Ethical objectives are specific goals
based on codes of behaviour.

E.g. as part of a The two are closely related but

businesses CSR policy different.
they might decide to
implement an ethical
objective such as
opening a day care
centre for its employees
children.
 S.W.O.T Analysis

Strengths Weaknesses Opportunities Threats

 SWOT analysis is to help businesses set

objectives.
 Used as the first stage in the planning process,
helps managers brainstorm the strengths,
weaknesses, opportunities and threats.
 Positive Negative
factors factors

Internal Strengths Weaknesses

External Opportunities Threats

• Books page 48 for example using Apple Inc.

• What is the purpose of a SWOT analysis?

• When would a company use it?

• Who should carry out the SWOT analysis

Strategies based on SWOT
Growth strategies-when you pair strengths and
opportunities
Defensive strategies – when you pair threats and
weaknesses
Re-orientation strategies- when you pair weaknesses and
opportunities
Defusing strategies- when you pair strengths and threats-
eliminate the threats in the market
 Strengths Defusing Threats

Growth Defensive

Re-orientation
Opportunities Weaknesses
SWOT analysis
Homework

Using the case study devise 4

detailed strategies for IKEA.
1) Growth
2) Defensive
3) Re-orientation
4) Defusing
 The Ansoff Matrix
Definition
A management tool used to make decisions on
growth strategies. It shows various strategies
businesses can take to access new markets or
release new products.
The Ansoff Matrix

Product
The Ansoff Existing New
Matrix examines
the growth Existing Market Penetration Product Development

potential of 2
Market
key areas –
market and New Market Development Diversification
product
Ansoff Matrix
There are 4 possible growth strategies:

1. Market penetration – increasing market share by selling more, intensive promotion

used

2. Market development – expanding into new markets or new market segments

3. Product Development – new products or variations of existing products for existing

markets

4. Diversification – new product & new market – the most risky strategy of all
Diversification
Product development
Market development
Market Penetration
Approach to Answering an Ansoff
Matrix Question
Using Ansoff’s matrix, compare and contrast the different strategies
being adopted by these two companies and comment on the possible
reasons why these were decided upon. [10 marks]
Examples of strategy
Advantages
Disadvantages
High/medium/low risk
CSR Article - Managebac
Plenary
Write a Tweet outlining the impact of ethics on business objectives.