IB Business and Management 1.3 – Organisational Objectives

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)

In a nut shell…..

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

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.

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

Business Objectives

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

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

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

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

Achieving objectives

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

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

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

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

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??

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

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?

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? 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.

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