The Relationship Between Mission and Objectives and why Businesses set Objectives

The relationship between mission and objectives Mission statement: a qualitative statement of an organisation’s aims which describes the general purpose of the organisation. The Coca‑Cola Company mission Our mission is: To refresh the world - in mind, body and spirit To inspire moments of optimism - through our brands and actions To create value and make a difference everywhere we engage.

The relationship between mission and objectives Corporate vision: What the company aspires to be. Coca Cola’s vision Our vision serves as the framework for our road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers; together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization (Examples taken from http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html )

The relationship between mission and objectives Corporate aims: the long-term statement of what the business intends to achieve. Objectives: More precise and detailed goals or targets that must be achieved in order to achieve the corporate aims and mission. Business will often have a hierarchy of objectives from corporate and departmental sometimes down to team and individual objectives. Team objectives must be achieved to help meet the department objectives which will help the company to achieve its overall corporate objectives, thereby striving towards its overall mission. Example: Corporate objective: To increase revenue by 15 per cent by the end of 2020. Marketing department objective: To increase spend per customer per month by £5 by 2017.

To increase market share by 2.5 per cent in the next year SMART objectives SPECIFIC To increase market share by 2.5 per cent in the next year TIME BASED - a period of time when target should be met MEASURABLE - a numerical target to reach Specific – They should be clear and easily defined Measurable – Objectives must be quantifiable, e.g. 15-20 per cent in 2 years Agreed – Managers and subordinates involved in setting should agree on objectives, where possible, to ensure all are motivated to work towards them. Realistic – Achievable and not conflicting with other objectives. Unrealistic targets do not motivate workers. Time bound – Based on explicit timescales, e.g. over 3 years

Why set objectives Objectives provide a clear set of guidelines for workers to follow and strive to achieve, and a sense of direction for the company to achieve what it wants to They co-ordinate business activity and guide the actions of the whole organisation They motivate workers and departments to strive for success They emphasise what is important for the business (priorities) and what time and money should be spent on They influence the actions of workers helping to ensure they make decisions and take actions in-line with what senior managers/owners want as set out in the aims and objectives.