1.3 Flashcards
(17 cards)
What is a vision statement?
the vision is the end goal of the business, the dream of what they want the future to look like
What is a mission statement?
the mission is what the business will do to achieve it’s vision, what the business is doing right now
What is the importance of vision and mission statments?
interested parties outside the organization will look into the vision and mission statments for credibility.
employees see the vision and mission as personal purpose for their work
What is value?
benefits that a stakeholder gets from the business
What is objectives?
stated outcome of what the business aims to achieve, centered around vision and mission
What is growth?
expanding a business in terms of revenue, profit, etc.
What is value extraction?
when shareholders prioritize profits too much, stakeholders will capture a large portion of value from the business for themselves
Give an example of value extraction
When shareholders take a very large portion of profits that could’ve been earned by underpaying employees, stakeholders will then capture for themselves a large portion of the value from the business
What is corporate social responsibility (CSR)?
a businesses’ commitment into improving society and the environment through their business in an ethical way
What are regenerative businesses?
businesses that seek ways to improve society through core business acitivities
What the benefits of CSR?
higher revenue (customers seek out businesses that align with their values)
customers more likely to stay loyal
motivate talented employees
protected reputation in the future
reduced risks
What are the limitations of CSR?
difficult to change the culture/values of an organisation
increased cost of production in short term
reputational risks
What is strategy?
the ‘how’ of the business, the plan to reach a specific objective
How do you plan a strategy?
understanding mission and vision
research into the market
consider the impact of plan on local and global scales
SWOT analysis of plan
sources of funding
create milestones to evaluate progress
What are linear production systems?
taking resources from the earth, making products, disposing of the products
What are circular production systems?
recycling; trying to reduce waste by taking the outputs and changing into inputs
What is a tactic?
smaller actions that a business takes to reach it’s goals
