Stakeholder Objectives & Mission Statements Flashcards Preview

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Flashcards in Stakeholder Objectives & Mission Statements Deck (17):
1

Importance of having a sense of what a business wants to achieve

Needs to be accurate - saying it just wants to make a profit isn’t enough

Depends on what the business is involved with and how long it’s been trading for

Will provide a target

Give everyone a sense of the idea to where the business is wanting/hoping to go

2

The hierarchy of objectives

Mission statement ➡️ aims/goals ➡️ strategic objectives ➡️ tactical objectives

The mission/overall purpose of the business
The vision and where it wants it to be in the future
The aims for achieving the mission + vision
The objectives to achieve all the above ^^^^

3

The mission statement

General idea of why the business is there to do and appeal to all stakeholders (motivate/stimulate business interest)

The over-arching aim of the organisation

Sums up core aims, business (specific?) objectives

Can be used in marketing

About the here & now

Include the overall organisation or corporate aims of the business

4

The corporate objectives

* profit
* growth
* to survive
* operate socially

5

Aims / goals

The specifics compared to a mission statement that’s very general

Survival = first few months/years of trading
Breaking even = not being profitable straight away
Market growth/share = dependent on type of business and market it operates in
Profit = longer term than survival

6

Financial objectives

Liquidity

Shareholder returns

Breaking even ( survival )

Profitability ( ROCE )

Cost minimisation

Gearing (how dependent on the business’ debt)

Affected by internal (HR, marketing, Ops) & external (MCSTEEPLE) influences

7

Strategic objectives

To achieve its main aims

A long term approach

SWOT may be undertaken to decide the most appropriate strategic objectives
⬇️
Deciding the best way forward to achieve its aims

8

Tactical objectives

The short term objectives needed to achieve the long term strategic objectives

Involving the day-to-day activities of the business

Concentrating on how to achieving the strategic objectives

9

How to set objectives

SMART

S pecific
=everyone understanding what the target is

M easurable


A greed
= all departments/everyone in a department agreeing
=all work together to be set and compromised
=different stakeholders having different needs they want met so it’s difficult

R ealistic
=avoid demotivation

Time
= over an achieveable time frame

10

Problems with SMART

Not automatically going to be achieved as with anything, will take time

Not all stakeholders are happy with the decisions to the objectives or how they’ll be reached

Belief that the stakeholder approach to a business that taking into account the needs of all stakeholders when setting objectives over one group (owners) means that all will benefit in the long run

Concentrating on one stakeholder group needs can be counter-productive (alienate the other stakeholder groups

Problems arising from one objective being chosen = redundancy as a strategy and employees will not benefit from this way to earn more profit

11

Internal constraints for objectives being met

A lack of finance to achieve the objectives

Poor communication in the business

Disputes in the workforce

Departments conflicting in the business of what they all want

12

External constraints to meeting objectives set

The state of the economy (bad time to expand and make people redundant)

Competitor behaviour (counter-act or follow what they’re doing)

Opinions/views of external stakeholders (community, government, suppliers)

Changes in the law affecting business operation

13

Corporate objectives

Gives a more specific idea of goals and aims than the vague mission statement

Gives the business a sense of direction

Define culture to how the business is organised and how it operates

Corporate culture linked = i.e. try make employees feel like they’re apart of a big family

14

Social objectives

Businesses having a social conscience

(being environmentally friendly, offering sponsorship for the local community)

^^^^ ways business can satisfy their social objectives

Used as an effective marketing tool

Acting this way, they can save large amounts of money
=reducing the amount of waste they create, not paying for landfill sites, satisfies social objectives

15

How do social and corporate objectives clash?

Corporate related to profitability for its shareholders

Spending money on social objectives adds extra costs and reduces the profits for shareholders which they won’t want

16

Why do objectives need to change from time to time?

Tactical objectives may alter
(Priorities & circumstances changing)

=needed to implement the strategic goals + the firm’s main aims/goals

Only extreme circumstances is the strategic plan needing to change
=Ebola outbreak for travel companies reducing sales targets

^^^^^ contingency plan in these situations

17

Objectives not being communicated properly

Objectives clearly communicated to all stakeholders

Method needs to be carefully chosen to communicate all objectives and ESPECIALLY a change in objectives

^^^^ change management


Employees resistant to change and new ideas
Reasons for the change clearly spoken about

Miscommunication = can quickly escalate into lack of trust and industrial unrest & worry