1. BUSS 4 theory You will need a new section to your folder!

2. Corporate Aims and Objectives Understanding Mission, Aims and 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

3. In this topic you will learn 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.

4. Syllabus Aims Candidates should understand the purpose and nature of corporate strategies and their relationship with aims and objectives.

5. Within BUSS4 you will be studying large 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?

6. Mission 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: Wikipedia Why 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?

7. 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?

8. 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.

9. 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.

10. 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

11. 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

12. Criticisms of mission statements Not always supported by actions of the business Often too vague and general Often merely statements of the obvious Often seen as a PR exercise Sometimes regarded cynically by staff Sometimes not a true reflection of reality To mean anything they must be supported wholeheartedly by senior management

13. Exam technique BUSS4

14. Your Summer exam! The Business Environment and Managing Change 25% of A Level 1 hour 45 minutes examination 80 marks TWO essay paper Pre-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.

15. Essay 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?

16. Essay Skills Define key term “Mission Statement” Give examples of good mission statements that work / fail Agree 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.

17. Corporate aims and objectives Corporate Aims The long term targets and plans to fulfil the mission statement Corporate Objectives The medium to long term quantifiable targets to fulfil the mission statement Corporate Strategy The actions to be taken by the business to achieve Mission Statement The overall reason for the business’ existence

18. Corporate aims Long term targets of a business ◦ Tend to be qualitative Provides a direction for the business Inform corporate objectives and strategies Performance can be measured against these aims Look at the Coca Cola web site to see how it has taken the mission statement and translated this into visions or aims.

19. Corporate objectives Medium to long term targets of a business ◦ Tend to be quantifiable  S  M  A  R  T Coordinate functional areas within the business Inform corporate strategy Quantifiable targets against which performance can be measured

20. Main functions of objectives A clear statement of what needs to be achieved A focus for all activity Targets for individual and group achievement A means of measuring performance

21. How objectives can be used Implement the mission Provide a clear focus for decision making Provide a target Motivate employees Facilitate control of actual performance Provide a criteria for evaluating performance Reduce uncertainty Provide a sense of unity

22. Homework Read The Economist article & complete Q’s