IB Business and Management 1.3 – Organisational Objectives

Learning Outcomes Explain the purpose of mission and vision statements Distinguish between aims, objectives, strategies and tactics and know how they relate Evaluate the need for firms to change objectives and innovate in response to changes in the internal and external environment (HL)

VISIONS AND MISSIONS WHAT’S THE DIFFERENCE??

Vision Vs Mission Vision Future based Answers the question ‘Where is the business going?’ Focus on the long-run Is inspirational and should shape strategic decision making Mission 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

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.

WHOSE VISION???? Let’s get the whiteboards out!!!

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

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.”

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.’

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

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

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

Whose mission?

to enable people and businesses throughout the world to realize their full potential.

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

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

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

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

Good Mission? 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. The Mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel.

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?

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

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

BUSINESS OBJECTIVES

Task….. 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

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. What is the difference between an aim and an objective?

Basically…..

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

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?

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

Task – 2 minutes Write 2 SMART objectives for yourself

DIFFERENT TYPES OF BUSINESS OBJECTIVES

Hierarchy of Objectives….. Corporate Aims Strategic Objectives (Whole Company Level) Tactical/Operational Objectives (Department Level) Individual Objectives Why do the arrows flow in this direction?

In a nut shell…..

Task Open the document ‘The Differences between Strategic and Tactical Objectives’ Drag and drop the descriptors into the right side of the table. What type of strategic objectives might a firm typically set?

Types of Strategic Objectives

Task - As you know, tactical objectives are set at departmental level. Imagine the strategic objective of the company was ‘To improve profits by 10% by June 2015’ 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

ACHIEVING OBJECTIVES

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

In summary……. It is a goalIt is a way to achieve a goal It is set at company level Strategic Objective Strategy It is set at department level Tactical Objective Tactic

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

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

The need to change objectives Why is it necessary for organisations to change objectives and innovate in responses to the internal and external environment?

Questions….. 1.What are the differences between aims and objectives? 2.What does SMART stand for? 3.What are the differences between Strategic and Tactical Objectives 4.What are the differences between a Strategy and a Tactic? 5.For BSM…….. Give a likely: a.A Strategic Objective b.A Tactical Objective c.A Strategy d.A Tactic