1. IB Business and Management
1.3 – Organisational Objectives

2. Learning Outcomes
Explain the importance of objectives in managing an organisation
Explain the purpose of mission and vision statements
Analyse the role of vision and mission statements in an organisation
Distinguish between Objectives, strategies and tactics and discuss how these interrelate
Evaluate the need for firms to change objectives in response to changes in the internal and external environment (HL)

3. In a nut shell…..

4. Task….. Define the term ‘objective’ [2] In pairs
Write your answer to the IB exam question:
Define the term ‘objective’ [2]
Remember what you need to do in order to gain the full 2 marks in a definition question

5. What is an objective?
An objective is a target or goal. This is a desired result that a person or group of people envisage, plan and commit to.

6. Objectives Should be SMART
What does SMART stand for?
Specific
Measurable
Agreed
Realistic
Timed

7. Personal Objectives
Objectives are not restricted to businesses, many individuals set objectives too…..
Examples of types of objectives:
Weight loss
Grades
Saving money
Can you think of any others?

8. Are these objectives SMART?
To lose 15kg within 2 weeks
To save $600 dollars within the next year
To achieve at least 4 grade 7’s in the IB in June
To get fitter by Christmas

9. Task – 2 minutes
Write 2 SMART objectives for yourself

10. Business Objectives

11. Hierarchy of Objectives…..
Corporate Aims
Strategic Objectives
Tactical/Operational Objectives
Individual Objectives
Why do the arrows flow in this direction?

12. Task
Open the document ‘The Differences between Strategic and Tactical Objectives’
Drag and drop the descriptors into the right side of the table.

13. Types of Strategic Objectives
Profits
Liquidity
Revenues
Market Share
Repeat customers
Brand Recognition
Customer Satisfaction
Growth
Shareholder value
Return on Investment
Environmental
Ethical

14. Task - As you know, tactical objectives are set at departmental level.
Write a list of the types of tactical objectives that might be set by each of the following departments:
Production/Operations
Finance
Human Resources
Marketing

15. Achieving objectives

16. Achieving Objectives Strategic Objectives Corporate Aims
Tactical/Operational Objectives
Individual Objectives
Achieved using Strategies
Achieved using Tactics

17. Task Open the document ‘Objective, strategy or tactic’
Decide whether they are:
Strategic Objectives
Tactical Objective
Strategy
Tactic

18. Importance of Objectives….
To Measure and Control
To Motivate
To Direct
To Aid Decision making
Why are Objectives so important?

19. Questions….. What are the differences between aims and objectives?
What does SMART stand for?
What are the differences between Strategic and Tactical Objectives
What are the differences between a Strategy and a Tactic?
For BSM…….. Give a likely:
A Strategic Objective
A Tactical Objective
A Strategy
A Tactic

20. Visions and Missions What’s the difference??
Let’s rewind….. What do businesses need to do before they can write meaningful objectives……
Visions and Missions What’s the difference??

21. Vision Vs Mission Vision Mission Future based
Answers the question ‘Where is the business going?’
Focus on the long-run
Is inspirational and should shape strategic decision making
Based in the present
A declaration of the core values of the company
Answers the question ‘Why does the business exist?’
Communicated to internal and external stakeholders

22. Mission Statements (according to Vern McGinnis) should …..
1) define what the organization is and what it aspires to be
2) be limited enough to exclude some ventures and broad enough to allow for creative growth
3) distinguish a given organisation from all others
4) serve as a framework for evaluating both current and prospective activities,
5) be stated in terms sufficiently clear to be widely understood throughout the organisation.

23. Whose vision????
Let’s get the whiteboards out!!!

24. The Rules 5 points for a correct answer 1 point for a feasible guess!!
A house point for the winner

25. Whose Vision?
“Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”

26. Whose Vision?
‘Our goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Our challenge is to achieve this in an increasingly dynamic and competitive environment.’

27. Whose Vision?
‘To be the worldwide leader in sharing delicious tastes and creating joyful memories.’

28. Whose mission?
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages

29. Whose mission?
To organize the world‘s information and make it universally accessible and useful.

30. Whose mission?

31. Whose mission?
to enable people and businesses throughout the world to realize their full potential.

32. Whose mission?
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

33. Whose mission?
To bring inspiration and innovation to every athlete* in the world. *"If you have a body, you are an athlete."

34. Whose mission?
To give people the power to share and make the world more open and connected.

35. Task – Lets be creative In pairs Pick a company of your choice
Can you write a mission statement for them?
Try to be inspirational

36. Good Mission?
The Mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel.
McDonald's brand mission is to be our customers' favorite place and way to eat and drink.
Saving people money so they can live better.

37. Task….
What are the key benefits to a business of having a vision and mission statement? What might the criticisms of vision/mission statements be?

38. Video
Watch the video “The benefits of vision, mission and objectives’

39. Homework Task
Research and find mission statements for 3 different businesses.
Try to find concise and unusual mission statements
If they contain the company name you can just insert ‘Company X’ instead
Add them to the Google doc