Lecture 1 - Chapter 3 Flashcards
(14 cards)
purpose of a business?
to make profit and enhance the wealth of shareholders
Purpose of an organisation?
To add value to society
what is a mission statement ?
a statement that discloses the aim and objectives of a business.
features of a mission statement?
-Purpose
-Strategy
-Policies
-Values
what is the purpose element of a mission statement?
is it clear as to why the organisation exists?
what is the strategy element of a mission statement?
what resources, competencies give the company a competitive advantage
what is the policy element of a mission statement?
what behaviours and standards are adopted by the organisation
what is the values element of a mission statement?
What beliefs do the managers and employees share?
what does it mean by objectives being SMART?
-Specific
-Measurable
-Attainable
-Relevant
-Timed
what are some of the secondary objectives for a profit making entity?
-customer satisfaction
-innovation
-social responsibility.
what are some of the secondary objectives for a non-profit making entity?
-investing in staff
-Minimal impact on the local community
-economy, efficiency, effectiveness.
what are some of the issues for the objectives of a non-profit entity?
-NFP’s usually have multiple objectives to consider.
-They may face difficulties in measuring these objectives
-Stakeholders conflict may be difficult to resolve
-Financial constraints may limit the amount that they can achieve
who are stakeholders?
they are any individuals or group with an interest in what an organisation does.
explain the mendelows Power-interest stakeholder matrix?
used to analyse stakeholders and to identify an appropriate response based on the level of power and level of interest
