Embedded Files
--VISION & MISSION STATEMENTS--
--VISION & MISSION STATEMENTS--
--DEFINITIONS--
--VISION--
A VISION STATEMENT refers to a statement that exclaims WHERE THE BUSINESS ASPIRES TO BE IN THE DISTANT FUTURE.
As such it is focused on the LONG-TERM, and is therefore RARELY UPDATED.
Vision statements DO NOT HAVE TO BE ACHIEVED, Instead, vision statements ALLOW PEOPLE TO SEE WHAT COULD BE.
--MISSION--
A MISSON STATEMENT refers to a statement exclaiming WHAT THE FIRM DOES ON A DAILY-BASIS, AND WHY IT DOES IT IN THE PRESENT.
As such it is focused on the SHORT-TERM, and is therefore MORE FREQUENTLY UPDATED.
Mission statements ARE USUALLY ACHIEVABLE and OUTLINES THE FIRM'S GUIDING PRINCIPLES TO ALL STAKEHOLDERS.
--EXAMPLES--
--COMMON OBJECTIVES--
--COMMON OBJECTIVES--
--PROFIT--
PROFIT (or 'THE PROFIT MOTIVE') is traditionally, the main business objective of most private sector organizations, as it represents the INCENTIVE and REWARD FOR ENTREPRENUERS who TAKE RISKS in setting up and running a business.
--GROWTH--
GROWTH of a business is usually measured by an INCREASE IN ITS MARKET SHARE which is equal to its sales revenue expressed as a percentage of the industry's total sales revenue.
This is important as increases in size often reflect competitiveness.
--SHAREHOLDER VALUE--
SHAREHOLDER VALUE refers to how much money the owners of a company (called shareholders) can make from owning part of the company, the two main sources of which are PROFITS made by the company that are often given to the shareholders as a reward in the form of DIVIDENDS as well as any GROWTH IN THE STOCK PRICE which means shareholders can sell their stock for more money than they paid for it.
--ETHICAL--
ETHICS refer to the MORAL PRINCIPLES that guide decision-making and business strategy. They are concerned with what is considered to be right or wrong, from society's point of view. For example, the use of direct marketing techniques aimed at children is banned in many countries as this is deemed to be unethical. The existence of health and safety legislation helps to prevent the exploitation of employees. Business ethics are therefore the actions organizations that are considered to be morally correct employ. An ethical business acts morally towards its workers, customers, shareholders and the natural environment. For example, an ethical employer would ensure all employees are given sufficient rest breaks during the day. Examples of ethical objectives that are in line with the use of circular business models
Disposal of waste in an environmentally safe manner.
Fairer conditions of trade with low-income countries.
Increased recycling of waste materials.
Reducing pollution by using more environmentally
friendly technologies and production processes.
--STRATEGIC & TACTICAL--
--STRATEGIC & TACTICAL--
--STRATEGIC--
STRATEGIC OBJECTIVES refer to LONG TERM GOALS such as profit maximization and growth explained above.
MARKET STANDING - This refers to the extent to which a business has presence in the industry. For example, Microsoft has high market standing as the market leader in the computer software industry. Walmart has high market standing for being the world's largest retailer. Having high or good market standing brings competitive advantages for these businesses.
--TACTICAL--
TACTICAL OBJECTIVES are SHORT-TERM GOALS that AFFECT A SECTION OF THE FIRM. They are specific goals that guide the DAILY FUNCTIONING of certain departments or operations, such as to raise sales revenue of a certain product line by $10m within the next year or to keep staff turnover below 10%. Tactical objectives tend to refer to targets set for the next 12 months or sooner. Such objectives might include:
SURVIVAL - New and unestablished businesses are likely to encounter a number of problems (see Chapter 2) such as a lack of brand recognition, a small customer base and/ or intense rivalry from existing firms. Hence, survival becomes a key tactical objective. Survival can also be important for more established organizations during an economic recession (see Chapter 46). For example, the global financial crisis of2008 and the COVID-19 pandemic threatened the survival of many businesses across all industries. Alternatively, if a business becomes a takeover target (see Chapter 5), then its survival as it currently exists could easily become the key tactical objective.
SALES REVENUE MAXIMISATION - New businesses strive to maximize their sales revenue to establish themselves in the marketplace. Sales staff and agents, such as those selling insurance or real estate, favour this tactical objective as their earnings are linked to the value of sales revenue. However, sales revenue is not the same as profit (the surplus that remains after all costs are paid). In the long-term, a firm with high sales revenue but low or no profit will struggle to survive.
--(CSR)--
--(CSR)--
--DEFINITION--
CORPORATE SOCIAL RESPONSIBILITY (CSR) refers to the level of responsibility a firm has to its stakeholders beyond just its owners or shareholders. Important measures of a business’s attitude to its social responsibility is the way in which it deals with environmental and ethical issues. As to the motivation to take on this repsonsibility we will see that ultimately it can be detrimental to a businesss survival not to take it seriously
--ADVANTAGES OF ADOPTING CSR POLICIES--
--DISADVANTAGES OF ADOPTING CSR POLICIES--
--TASK--
Use the following two ChatGPT prompts to create a set of images like the ones above:
"Give a real world example of a firm that has used the objective of corporate social responsibility to achieve the following: improved corporate image, increased customer loyalty, cost cutting, improved staff morale and motivation"
"Give a real world example of a firm that has used the objective of corporate social responsibility BUT has met the following difficulties: High compliance costs & price uncompetitiveness, lower profits, Stakeholder conflicts, and the subjective nature of ethics"
--WHY FIRMS MUST TAKE CSR SERIOUSLY--
--MDG TASK--
Find an example for TWO of the MDGs of how real firm's have taken action in order to comply/meet the target, like the IKEA example above realted to Goal 7.
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