1.

3 Business
Objectives
IB Guide Connections

2
 Discussion
Do you recognize any of these statements? What do you think they are and
what is their purpose in the business? What similarities do you notice in all
of them?

1. To make the best products on earth and to leave the world better than we found it.

2. To build the future infrastructure of commerce

3. The number one department store in the world for luxury branded merchandise,
maintaining an unprecedented level of retail standards, expertise and profitability..

4. To be one of the world's most competitive state enterprises being a timely, modern, transparent,
efficient and effective operation with excellence and honesty standards 3
Answers
1. Apple
2. Alibaba
3. Harrods
4. Pemex
1. To make the best products on earth and to leave the world better than we found it.

2. To build the future infrastructure of commerce

3. The number one department store in the world for luxury branded merchandise,
maintaining an unprecedented level of retail standards, expertise and profitability..

4. To be one of the world's most competitive state enterprises being a timely, modern, transparent,
efficient and effective operation with excellence and honesty standards 4
Vision and Mission
Statements
Statements that guide the business
 Key
Word
Vision Statement
An aspirational description of what an organization would like to achieve or
accomplish in the long-term future. These are aspirational.

Concept Audience Change

What do we Internal- inspires and

This should
want? motivates employees
never change
Where do as it is the
we want to External- makes
core values of
be in the stakeholders loyal to
the business
future? the overall vision of
shared beliefs
6
 Key
Word
Mission Statement
A statement of purpose of why the business exists. It is more grounded in
reality and the objectives of the business

Concept Audience Change

Why are we Internal- provides The business
doing what we goals and objectives environment
are doing? for performance changes daily
and this
External- shows how statement
well the business is changes to meet
achieving its vision new
circumstances
7
 What are the advantages and disadvantages
of these statements?

Advantages Disadvantages

• Very vague and don’t always

• Help motivate employees
distinguish one business
with the positive aspects of
from another
the business
• Just used for public relations
• Show customers what the
and not followed in the
business is about
business
• Help align stakeholder
• They don’t actually provide
interests with business
direction to internal
interests
stakeholders
8
Common Business
Objectives
What do businesses want to achieve?
Discussion
What are different aims or objectives that a business might have?

Think about sole traders, partnerships, social enterprises, new businesses

established businesses, etc.

10
 Common Business
Objectives
Growth Protecting
shareholder value
Profit satisficing
Survival

Ethical objectives Profitability 11

Strategic and Tactical
Objectives
Specific types of objectives
 Types of Objectives
Strategic Objectives – these are the medium to long term objectives set up by senior
Key
Word managers to guide the company in the right direction to achieve the aims. These may be
risky, a large investment is required, and cannot be easily reversed.

Key
Tactical objectives – these are the medium to short term objectives set by middle managers
Word to achieve the strategic objectives. The risk is relatively low, likely to require few resources,
and easy to change.

Operational Objectives – these are the day to day objectives set by floor
managers (and sometimes workers themselves) so that the company can reach
its tactical objectives. 13
 Types of Objectives
at ion
Cre
Vision/Aims

Strategic objectives
io n To be the best
Act To have the
highest first- IB school in
Tactical objectives
choice all of Spain
Operational objectives
To hire teachers university
To have each student have with experience acceptance for
a daily study hall with a as IB examiners all students
trained tutor

Day-to-day goals Short to medium Long term goals Highest

term goals
aspiration 14
15
 Successful objectives are SMART

Specific- They are not too broad and focus on a certain area
Measurable- they have a number associated with them so you know if you achieved
it or not
Achievable- Challenging but unattainable- not too easy but not too difficult
Relevant- They should be understandable so that they are easy to communicate and
are areas that need to be improved
Time based- there is a date you want to achieve them by

16
 6
Minutes Activity
Look at these 8 objectives. Decide if they are SMART or not. If they are not, please
rewrite them so that they meet all of the criteria.

1. Eat healthier this year

2. Run a 10km race in 53 minutes by December 2023
3. Increase market share
4. Be the best supermarket in Madrid
5. Increase internet sales by 15% by the end of 2024
6. Increase production by January 1st 2025.
7. Sell five muffins in the month of April.
8. Do 25 squats in 2 minutes in the next three months.
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Answers
1. Eat healthier this year/Eat 300 grams of fruits and vegetables for one year.
2. Run a 10km race in 53 minutes by December 2023/ SMART
3. Increase market share/ Increase market share in India by 3% by the end of the year.
4. Be the best supermarket in Madrid/ Have the highest sales by value in Madrid in 2023
5. Increase internet sales by 15% by the end of 2024/ SMART
6. Increase production by January 1st 2025/ Increase production of smart watches by 5% by
January 1st 2025.
7. Sell five muffins in the month of April/ Sell 500 muffins in the month of April
8. Do 25 squats in 2 minutes in the next three months/ SMART

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 20
Minutes Activity
Imagine that you and a friend are starting a new social enterprise and you are creating
the business plan. You need to write the vision statement, mission statement, 3 SMART
operational objectives, a tactical and a strategic objective.

You can choose any of the following businesses as your theme:

• Art gallery for local artists with special needs

• Bakery that uses all fairtrade ingredients
• Hotel that employees newly arrived immigrants
• A clothing company that donates one coat to people in need for everyone that is
purchased
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Corporate social
responsibility
Taking stakeholders into consideration
Spectrum Discussion
Based on this Youtube series, I am going to ask you questions based on business
ethics, corporate social responsibility, and your own buying habits. Watch the
first three minutes of the video to understand the concept.

Spectrum Video
I am willing to pay more for an item if I know it is
ethically made/sourced.

Social enterprises actually care about their cause.

All businesses are out to make a profit.

Business ethics is more important now than it was 15

years ago.

Businesses that are ethical are more successful.

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Key
Word
Corporate social responsibility

business model that helps a company be socially accountable to itself,

its stakeholders, and the public.

Businesses now try to do more than just maximize profits, they should also try to do
more positive good for society.

All businesses have to follow the laws of the countries they are operating in, but CSR
goes above and beyond the laws.

Can you think of some examples of actions a business can do to show they
operating using CSR? 22
Ethical objectives
To practice CSR many businesses set ethical objectives. They want to meet certain
goals to help different stakeholders of the business, the environment, the general public.
These could include:

1. Pay workers fair wages above the legal limit

2. Invest in the local community to improve the lives of citizens
3. Reduce waste and pollution to help the environment
4. Pay suppliers as quickly as possible
5. Use suppliers that guarantee fair trade and equal employment

23
1
class Debate
Debate statement:

Businesses that practice corporate social responsibility and follow ethical

objectives are more successful than those that don’t.

Using the debate explanation and rubric, you

will have one day to prepare your side of the
argument for the debate tomorrow in class.
Remember, it is essential to prepare your part
of the debate as well as work with your team.
You must have facts and evidence to prove
your point.
24
Debate follow-up:
What are the advantages and disadvantages of following CSR and having ethical
objectives? Write down three each and then share with a partner.
Advantages Disadvantages

• Costly and time consuming

• Build customer loyalty
especially for small
• Create a positive image for
businesses
the brand
• Consumers understand the
• Develop a positive working
idea of greenwashing/fake
environment for employees
CSR
and suppliers
• Losing focus on the mission
• Reduce legal issues
of the business

25
Ethics:
Moral principles
Key Concepts
and values that
form the way a
person or
organization
conducts their Businesses, and the people within them, make
hundreds of decision every day that affect the
activities. overall operation of the business and the
stakeholders. Sometimes these are positive and
other times they are not.

Research ONE business is positively focusing on

ethics and ONE business that has had an ethical
issue in the past.
 Real-life
Business After starting his career in a different place, Francisco, founder of
Woodabu, went back to Béjar, Spain his hometown, to its forests

Spotlight
and woods. He started to design tables, headboards and benches
with local wood. From that, the name of this beautiful adventure,
Woodabu, was born, and since then it has not stopped growing.

The Woodabu family does not only claim to be a designer

furniture company, we are aware of the world we live in and
therefore we believe it is necessary to spread and create
beauty with materials that generate a positive impact, both on
the planet and on people.

If you get one of our pieces you will be part of the so-
called sustainable economy, since we bet on a local
production, 100% Spanish, always using wood from
Taken from https://woodabu.com/pages/sobre- local forests and managed in a sustainable way.
nosotros
oolkit

28
SWOT Analysis
A SWOT analysis
is the first stage in STRENGTHS WEAKNESSES
the planning Something Something
process for many INTERNAL to the INTERNAL to the
businesses. business that is business that is
POSITIVE NEGATIVE
It allows managers
to brainstorm the
perceived OPPORTUNITIES THREATS
strengths,
weaknesses, Something Something
opportunities and EXTERNAL to the EXTERNAL to the
threats of a business that is business that is
business POSITIVE NEGATIVE

29
SWOT in practice
Check out this SWOT
from McDonald’s. Look
at each category to see
what goes into each
category.

Then, check out the

website below to see the
explanations of each of
the items.

https://swothub.com/mcdon
alds-swot-analysis/
30
 Caution
Many students put the items in the wrong categories for
internal vs external.

For internal, the business is able to control it in some way. This

could be their product, employees, amount of pollution or
market share.

For external, this must be something that is outside of the

business’s control. For example, competition, changing tastes
and preferences, birth rates, or
changing technology.
31
Read the following sentences and decide if they are strengths, opportunities,
weaknesses or threats for McDonalds.

Information Category

Strong brand recognition. 8 out of 10 people can name the company

based off of the logo.
Very few stores in China which is the largest fast food market.
Governments set new laws to reduce fast food consumption.
Healthy trends continue with more demand for smoothies, salads, and
vegan options.
Employee turnover rate is high

15% sales growth worldwide in the coffee industry for more growth
of McCafe.
New app creation improves user ordering experience.
Asian millennials consumer more international fast food brands than
previous generations

32
 Read the following sentences and decide if they are strengths, opportunities,
weaknesses or threats for McDonalds.

Information Category

Strong brand recognition. 8 out of 10 people can name the company STRENGTH
based off of the logo.
Very few stores in China WEAKNESS
Governments set new laws to reduce fast food consumption. THREAT
Healthy trends continue with more demand for smoothies, salads, and THREAT
vegan options.
Employee turnover rate is high WEAKNESS
15% sales growth worldwide in the coffee industry for more growth OPPORTUNITY
of McCafe.
New app creation improves user ordering experience. STRENGTH
Asian millennials consumer more international fast food brands than OPPORTUNITY
previous generations
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12
Minutes Activity
Work in groups of 3.

Conduct a SWOT analysis for your school.

What are its strengths, weaknesses,
opportunities and threats. Make sure that
you put each item in the correct category.

Share your work with another group to see

if there are some items you forgot.

34
oolkit

35
The Ansoff matrix is
a tool that help
businesses plan and
set objectives. It also
gives them strategies
to help grow the
business in different
ways.

There are four

different quadrants
based off of products
and markets.

36
Be the Teacher
You are going to be the teacher and learn
about the different quadrants of the
Ansoff matrix.

Everyone will get a number between 1

and 4.

1 = Market penetration
2 = Product development
3 = Market development
4 = Diversification

Each group will learn about ONLY their

quadrant. Please follow the information
on the following slide. 37
 25
Minutes Activity
Using the internet, your book, or any other resources available to you, you and your group
will research the quadrant you have been given. Using the worksheet given, you must label
and answer the following question:

1. Label the arrows

2. Label the edges of your quadrant
3. Give a general explanation of your quadrant
4. Give examples of general strategies that can be used in this quadrant
5. Give examples of REAL businesses that have used these strategies
6. Any extra information that you find important

Once that is all finished, everyone will form new groups. Each group will consist of one
person from each quadrant. Each person will teach their new group about what they learned
and finish filling out their notes. 38
Teacher only information
** If the previous activity is done, this is only for the teacher. If you prefer to teach Ansoff, these slides can be used
for direct instruction.

Market penetration is increasing sales by selling existing products to

the same market. The same market can mean the exact same
customers or the same type of customers (consumers currently buying
from the competitor).

This can be done using promotions, loyalty cards, extending store

hours, or suggesting higher usage of the product or service.

For example, Ulta Beauty has one of the best customer loyalty programs in the industry. Netflix also uses it
by continuing its most popular series so consumers so not change platforms.

This can be a slow growth strategy, but it is also very low risk.
39
Product development
Product development is creating new products for existing
markets.

New products can be completely different, or many times, they

are upgrades or small changes to existing products.

For example, when Apple created the Ipad or Iwatch, they were
completely new products to the company. However, subsequent
versions, Ipad Pro, Ipad mini, Iwatch 3, etc are all just changes to
existing products.

This strategy is higher risk due to the research and development costs of the new products and
marketing needed to get the customers to know about them. But, it may also allows first mover
advantage.

** First mover advantage: first to the market with a new product so it gains new and loyal customers
before other businesses have a competing product 40
Market development
Market development is finding new markets for existing
products.

There are three main types of market development.

1. Geographic- opening a store in a new location
2. Demographic- finding new groups of people to buy the
product
3. Distribution channels- selling them via new channels like
the internet, physical stores, catalogues, vending machines

For example, McDonalds has spread to almost every country in the world via geographic market
development. Crocs were originally created for boat workers, but now are sold to the general public. The
company LL Bean started as a physical store, but has since expanded to selling via catalogues and the
internet.

This is medium risk because it involves market research about local tastes and preferences and research
and training on new distribution channels. 41
Diversification
Diversification is selling new products into new
markets.

There are two types of diversification:

1. Related- similar to existing products or services
(same industry)
2. Unrelated- a completely new product or service
and market (new industry)

An example of related diversification is when the Estee Lauder the cosmetics company bought a
perfume brand. They had beauty industry experience, but did not work specifically with
perfumes.

For unrelated diversification, Berkshire Hathaway started out as a textile manufacturing

company. Now they own companies like Pampered Chef, Helzberg Diamonds and BNSF
Railroads.
42
EXTRA PRACTICE

If you need extra practice on SWOT or Ansoff, use the extra

worksheet provided.

43
Case study
practice

44
Up in Flames
Diedra Flores has always had a passion for spicy food, and after 15 years of working in Finance, she
decided to open her own hot sauce shop in 2015 as a privately held company. Her mission is to bring the
best hot sauces from around the world while supporting local producers. She currently has 3 employees
who do the ordering, attending to customers and marketing. Recently, a new hot sauce shop has opened and
there is also competition from online retailers. To differentiate herself from the competition, Diedra has
decided to implement a new CSR policy.

The new CSR policy will focus on sustainable packaging for the hot sauces, donating 50 cents of each
purchase to charities where the sauce is made, giving out scholarships for students interested in culinary
arts and giving employees one day off per month to volunteer at a local charity. However, some of her
shareholders are worried that she is losing focus and this will cost the business a lot of money. It is possible
that another employee will need to be hired to cover the days off the current ones are taking for
volunteering.

a. Define ethical objectives. 2

b. Explain one advantage and one disadvantage of XYZ having a mission statement. 4
c. Discuss XYZ’s plan to develop a policy of corporate social responsibility. 10
45
Markscheme
a. Ethical objectives are goals or values based on a set of beliefs and principles followed by the business. This is an
overreaching policy that covers all actions and decisions of the organization.

** no application required. Do not credit examples alone.

Award [1] for a basic definition that conveys partial knowledge and understanding (Ethical objectives are the
goals of a business based on a set of beliefs/values/principles).

Award [2] for a full definition including the idea that ethical objectives are more than just doing one charitable act
like donating to charity or allowing employees time off for charitable works.

b. Advantages:
- Giving direction to stakeholders: The employees are the ones doing the ordering and marketing, so it helps
them know what to buy and what to say in the ads. Also, it might get new shareholders interested as the current
ones are not happy with the new CSR policy
- Motivates employees: employees know that they are working for a place that helps the people
Disadvantages:
- Vague: the mission statement is vague and does not differentiate it from the competition. A new sauce shop has
opened and there is online competition, so it might not work to bring in customers
- Accept any other relevant answers 46
 Markscheme
c. Use the rubric from the IB Guide page 45 to assess this question:

Advantages for the CSR policy:

- Motivating to employees: they know that they are helping local producers with each bottle sold. They are also able to
donate time to a local charity of their choice. This gives them a greater sense of purpose and can reduce labor turnover
and employee satisfaction
- Marketing: customers are demanding higher standards from businesses. They want to shop from businesses with a
CSR policy and with increasing competition, this might help them gain customers from their competitors through
marketing is aspect of the business.
- Customer loyalty: not only will it attract new customers, but it can maintain current customers. Customers who know
that they are shopping at an ethical business are more loyal to that business over time. This will help UIF with
increasing competition.

Disadvantages:
- Costly: UIF is donating money to charities and giving employees time off. This is a privately held company and
shareholders are not happy about this move.
- Losing focus: the business is focused on finding the best hot sauces, but only one of their initiatives focus on hot
sauces. If they focus too much on CSR, they might lose their competitive advantage against competitors.
- Fake marketing tactic: consumers are starting to realize that businesses do this just to get business. They might reject
these efforts and go to the competitors who are still focused on only hot sauces.
47
IB Guide Connections

48
References:
Textbooks references:

Lomine, L., Muchena, M., & Pierce, R. A. (2022). Oxford IB

Diploma Programme: Business Management Course Book (1st
ed.). Oxford University Press.

Surridge, M., & Gillespie, A. (2022). Business Management for

the IB Diploma. Hodder Education.

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