1. Starter: What is a mission statement?

2. BUSS4 Mission Statements
The mission of an organisation is its essential purpose, the mission statement is a means of communicating to key stakeholders what the company is doing and what it ought to be doing.
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?
Mrs Gordon's notes

4. 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.

5. 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

6. Would these be suitable or appropriate for the businesses today?
Microsoft: ‘A computer on every desk and in every home’ 1988
Coca Cola: ‘Our mission is to get more people to drink Coke than water’.

7. Corporate aims and objectives
Corporate aims: the long-term intentions of a business.
(Usually in the form of the mission statement)
Corporate objectives: targets that must be achieved in order to meet the stated aims of the business.
Yardstick or decision-making and performance.
Helps co-ordinate business activities

8. Corporate aims and objectives
BUSS4 Mission Statements
Corporate aims and objectives
Mission Statement
The overall reason for the business’ existence
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
Mrs Gordon's notes

9. BUSS4 Mission Statements
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.
Mrs Gordon's notes

10. 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

11. BUSS4.1 Mission, Aims and Objectives
Strategies
"Strategy is the direction and scope of an organisation over the long- term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".
Planned by the board of directors’
SWOT, Ansoff’s matrix and PESTLE will be used to assist
BUSS4.1 Mission, Aims and Objectives

12. Greggs plc - Strategies
1.      Expanded from 20 shops in Newcastle to alternative location around the UK
2.      Went into long-term expansion by introducing products such as sausage roles – driven the groups performance against a declining bakery market
3.      Prioritises employees and customers over shareholders – Excellent customer service and motivated staff

13. Influences on Objectives & Policies
Social
responsibility
Owners
expectations
Manager’s
goals
Business
ethics
Objectives
and policies
Economic
Factors
Consumer
pressures
Pressure
groups
Employee
expectations
Trade
Unions
Legislation

14. Stakeholder Definition:
An individual or group with a direct interest in the activities and performance of an organisation.

15. Who are the stakeholders?
Employees
Managers
Shareholders
Customers
Media
The government
Local community
Suppliers
What are their objectives?

16. Shareholders objectives
High profits
High dividends
Growth
A say in the business
A positive corporate image

17. Employee objectives High pay Job security Good working conditions
Fair treatment
Fringe benefits
Health and safety
Promotion prospects
Training opportunities

18. Customer objectives Low prices Value for money High quality products
Regular supply
Choice
Clear and accurate information

19. Suppliers objectives A long term relationship with the firm
Large size and high value of contracts
Frequent and regular order
Prompt payment
Fair prices
Growth of the firm leading to more orders

20. Local community objectives
Employment prospects
Safeguarding the environment
Acceptance of social responsibility
Ethical behaviour

21. Government objectives
Compliance with laws and regulations
Efficient use of resources
Employment
Contribution to the national economy
Payment of taxes

22. Discussion question!
Meeting stakeholders needs – to what extent is this a win-lose or win- win situation??
Discuss in pairs and be ready to feedback to the class.

23. How can stakeholders influence the decisions/ strategies made?

24. Public Limited Companies, whose shares are freely traded on stock exchanges and are vulnerable to takeover, place satisfying shareholders and the making of profit very high on their list of priorities. Richard Branson and the Virgin Group recognise all stakeholders and emphasise responsibility over profitability. With their activities being under increasing scrutiny to what extent do all businesses need to take the perspectives of all stakeholders into account when establishing corporate aims and objectives? Justify your answer with reference to the Virgin Group and/or other organisations that you know. (40 marks)
HW: Research 3 organisations and how they have made decisions based on the influence of their stakeholders and what impact that has had on them.