Corporate Aims and Objectives Understanding Mission, Aims and Objectives “Organisational values’ always derive from ‘individual’s values’- especially those of the founding fathers and of the very top executives. “ SK Chakraborty “To last, a company must strive to add long-term value rather than going for the quick buck…it must be guided by the desire for continued relations with its principal constituencies – employees, customers, suppliers, stockholders. “ Charles Koch BUSS4.1 Mission, Aims and Objectives

In this topic you will learn about: Understanding Mission, Aims and Objectives Mission statements Corporate aims and objectives Corporate strategies Differing stakeholder perspectives This follows on from BUSS3 where you studied corporate and functional objectives. BUSS4.1 Mission, Aims and Objectives

Within BUSS4 you will be studying large organisations. Which organisations do you think each of these statements belong to? To bring inspiration and innovation to every athlete in the world. To help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible. To ensure the ability of the earth to nurture life in all its diversity. To be the most innovative and distinctive broadcaster in the UK, to provide effective competition to the BBC, to engage and challenge audiences . A list of mission statements and companies and a mix and match worksheet is available in the teacher’s folder. Do you think these statements are a fair reflection of their actions? BUSS4.1 Mission, Aims and Objectives

Mission Statements “A mission statement is a brief written statement of the purpose of a company or organisation. Ideally, a mission statement guides the actions of the organisation, spells out its overall goal, provides a sense of direction, and guides decision making for all levels of management.” Source: Wikipedia Why is it important to share a company’s mission statement with employees? Why is it important for managers to think back to the mission statement when making strategic decisions? Does your school, college or work place have a mission statement? How does it influence the actions of managers? How does it influence your actions? BUSS4.1 Mission, Aims and Objectives

Supporting your studies with wider reading Supporting your studies with wider reading. Throughout this final unit it is important that you build upon your business studies knowledge with examples of business practice from the real world. In both parts of the final examination you will be rewarded for bringing in examples from your wider reading. Select 2 large businesses that you are interested in or have been tracking as part of your studies. Visit the websites of these businesses and identify the mission statement Do you think this mission statement is a clear reflection of the businesses? What do you think makes a good mission statement? What are the benefits of a mission statement? What actions can (do) the businesses take to help achieve their mission statements? BUSS4.1 Mission, Aims and Objectives

Corporate aims and objectives Mission Statement The overall reason for the business’ existence Corporate Aims The long term targets and plans to fulfil the mission statement Corporate Objectives The medium to long term quantifiable targets to fulfil the mission statement Corporate Strategy The actions to be taken by the business to achieve BUSS4.1 Mission, Aims and Objectives

Corporate aims Long term targets of a business Tend to be qualitative Provides a direction for the business Inform corporate objectives and strategies Performance can be measured against these aims http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html Look at the Coca Cola web site to see how it has taken the mission statement and translated this into visions or aims. BUSS4.1 Mission, Aims and Objectives

Corporate objectives Medium to long term targets of a business Tend to be quantifiable S M A R T Coordinate functional areas within the business Inform corporate strategy Quantifiable targets against which performance can be measured Read the case study on the Foreign and Commonwealth Office at www.times100.co.uk Using the FCO as an example draw a flow diagram to explain the relationship between mission, aims, objectives and strategy. http://www.thetimes100.co.uk/case-study--delivering-mission-statement--146-362-1.php BUSS4.1 Mission, Aims and Objectives

Corporate strategies Medium to long term plans of a business Details how aims and objectives will be met through decisions and activities relating to all aspects of the business Where does it want to be in the future? Where is the business now? How is it going to make this journey? Corporate strategy The current position may be assessed using a SWOT analysis Corporate aims and objectives BUSS4.1 Mission, Aims and Objectives

Corporate Strategy Strategy Consulting Limited provides specialist advice to help business’ develop their corporate strategy. The services offered to their clients include: An overview of your market — mapping out just where your clients’ needs are and how best you can fulfil them. Perspective on your competitors — checking their offer, seeing what they do well, realising what you can do better. Understanding of business dynamics — seeing the cycle of business organisations and knowing how to optimise the position your business is in. A comprehensive SWOT analysis — putting your company’s strengths, weaknesses, opportunities and threats into a form and a context which furnishes you with an invaluable tool for strategic planning. Expert guidance on processes and procedures — helping you set in place the systems and mechanisms which seek to ensure that the strategy is not just put in place but delivered effectively. Prompt planning for increased profits — putting in place a corporate strategy which can enhance your chances for a better bottom line. Source: http://www.strategyconsultinglimited.co.uk BUSS4.1 Mission, Aims and Objectives

Corporate strategy – recap BUSS3 Porter’s Generic Strategy Highest Differentiation Lowest Cost Cost Leadership Differentiation Focused Cost Focused Mass Market Niche Market How can Porter’s Generic Strategy help assess and develop corporate strategy? BUSS4.1 Mission Aims and Objectives

Corporate strategy – recap BUSS3 Igor Ansoff’s Matrix PRODUCTS New Existing Market Penetration Product Development Market Development Diversification Existing MARKETS New How can Igor Ansoff’s Matrix help assess and develop corporate strategy?

Corporate strategy Strategic decisions are made by managers at the top of the hierarchy and once made are difficult to reverse Corporate strategy may include: Globalisation (BUSS4.2) Operational efficiency (BUSS3 Functional strategies – remember BUSS4 is synoptic) Growth strategies through acquisitions or mergers (BUSS4.7) BUSS4.1 Mission Aims and Objectives

Stakeholder perspectives Any one with an interest in the actions of a business Stakeholder Employees Shareholders Customers Suppliers Creditors Investors Community Government Pressure Groups BUSS4.1 Mission, Aims and Objectives

Stakeholder perspectives - Tesco Print off this slide and for each of Tesco’s stakeholders add what their objectives are likely to be Any one with an interest in the actions of a business Stakeholder Employees Shareholders Customers Suppliers Creditors Investors Community Government Pressure Groups BUSS4.1 Mission, Aims and Objectives

Conflict of interest Each individual group of stakeholders will have their own objectives There is therefore likely to be conflict between some of these objectives Watch the video clip on expansion plans at Luton Airport Who are the stakeholders? What are the individual stakeholder objectives? What is the potential conflict between stakeholder perspectives? Sometimes clips disappear or move if this happens you may be able to re find this one – Expansion Plans at Luton Airport BBC News http://news.bbc.co.uk/player/nol/newsid_4370000/newsid_4375200/4375216.stm?bw=bb&mp=wm&asb=1&news=1&bbcws=1 BUSS4.1 Mission, Aims and Objectives

Stakeholders and decision making Different stakeholders can put pressure on businesses The degree of pressure depends on the relative power of stakeholder groups Stakeholder Pressure Employee Industrial action Labour turnover Community Lobbying Boycott Government Legislation Intervention ( both covered in BUSS4.3) Suppliers Payment terms Exclusivity agreements Customers Environmental or ethical demands Direct impact upon demand Are stakeholders able to affect business behaviour? Sometimes clips disappear or move if this happens you may be able to re find this one – TV chef in Tesco chicken row BBC News http://news.bbc.co.uk/1/hi/business/7477190.stm Draw and complete a similar table for the other stakeholders. BUSS4.1 Mission, Aims and Objectives

Activity Visit the Prêt a Manger web site at www.pret.com Identify its : Mission statement Corporate aims and objectives Identify what it does to look after its stakeholders. Discuss: To what extent do you think the success of Prêt a Manger is a result of a clear mission and understanding stakeholder perspectives? BUSS4.1 Mission, Aims and Objectives

Essay Starbucks’ is a leading high street coffee retailer established in Seattle in 1971 and now operating across over 40 countries. Its mission statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” With reference to Starbucks and/or any other organisations you know, to what extent do you agree that a clear mission statement is crucial to the success of a business? BUSS4.1 Mission, Aims and Objectives