Unit 1: Exploring Business Activity Strategic Planning Process

Today’s session we will: Examine the strategic planning of organisations, including aims, objectives, mission & value statements This relates to: LO2: Understand how businesses are organised to achieve their purposes P4: Explain how their style of organisation helps them to fulfil their purposes It will help you with assignment 1 (task 3)

Aims & Objectives: Aims of organisation depend on type of business, e.g. a charity will have different aims than a private, for profit business Aims of organisation depend on type of business, e.g. a charity will have different aims than a private, for profit business Business must have clear direction – this is it’s overall aim and can be broken down into smaller aims & objectives Business must have clear direction – this is it’s overall aim and can be broken down into smaller aims & objectives Strategic planning helps gives business a clear direction Strategic planning helps gives business a clear direction Senior managers draw up strategic plans for approx 5 year period Senior managers draw up strategic plans for approx 5 year period

Aims & Objectives: Find the overall aim of Oxfam Find the overall aim of Oxfam tion/what_we_do/index.html?intcmp= hp_takeover-rhcolumn_what-we- do_ tion/what_we_do/index.html?intcmp= hp_takeover-rhcolumn_what-we- do_100111

Aims & Objectives: Find the overall aim of Sony Find the overall aim of Sony ess_Archive/200010/ E/ ess_Archive/200010/ E/

Aims & Objectives: Find the aim of HM Prison Service Find the aim of HM Prison Service bouttheservice/statementofpurpose/ bouttheservice/statementofpurpose/

Mission & Values: These shape strategic plan of organisation Mission statement – sets out purpose of organisation Values statement – sets out core values of organisation

Mission Statements: Identify the key words in the following 2 mission statements: Identify the key words in the following 2 mission statements: ‘Oxfam International is an international group of independent non-governmental organisations dedicated to fighting poverty and related injustice around the world.’ ‘Oxfam International is an international group of independent non-governmental organisations dedicated to fighting poverty and related injustice around the world.’ ‘innocent: The Earth’s favourite little food company. A company that makes delicious, healthy, natural, ethical food universally available for all.’ ‘innocent: The Earth’s favourite little food company. A company that makes delicious, healthy, natural, ethical food universally available for all.’

Mission & Value Statements Activity: For the organisation provided, produce a poster that includes the following: For the organisation provided, produce a poster that includes the following: Mission statement Mission statement Values statement Values statement Aims & objectives Aims & objectives Use the branding of the organisation, e.g. logo, colours, tag line, etc on your poster Use the branding of the organisation, e.g. logo, colours, tag line, etc on your poster

Strategic aims & objectives: Aim: what organisation seeks to achieve through its strategic plan Aim: what organisation seeks to achieve through its strategic plan Objectives: goals organisation seeks to achieve during period of strategic plan (e.g. 5 years) Objectives: goals organisation seeks to achieve during period of strategic plan (e.g. 5 years)

Example: Ryanair: Ryanair: Aim: ‘to be Europe’s number 1 low- cost airline Aim: ‘to be Europe’s number 1 low- cost airline Objectives: Objectives: To undercut fares of rivals To undercut fares of rivals To take over similar airlines To take over similar airlines To increase sales and destinations flown to each year To increase sales and destinations flown to each year Remember objectives should always be SMART

Cascading of objectives: Company-wide objectives Functional objectives Team objectives Individual objectives

Strategic planning process: Involves major decision makers and major resources Involves major decision makers and major resources Strategic managers create plans to help organisation meet objectives Strategic managers create plans to help organisation meet objectives Performance measures are established to measure success of the strategic plan Performance measures are established to measure success of the strategic plan

Influencing factors: Stakeholders – customers, employees, etc Stakeholders – customers, employees, etc Business environment – what is happening outside of the business Business environment – what is happening outside of the business Business type & ownership – profit/not-for- profit Business type & ownership – profit/not-for- profit

Activity: Based on the organisation you researched last week decide on the following: Based on the organisation you researched last week decide on the following: Who the main stakeholders are and why? Who the main stakeholders are and why? What external influences might have an effect on that business and why? What external influences might have an effect on that business and why?