WHERE ARE WE? WHERE DO WE WANT TO BE? HOW DO WE GET THERE? HOW DO WE KNOW WE ARE THERE? 1.3 ORGANIZATIONAL OBJECTIVES

YOUR PERSONAL OBJECTIVES Reflect on your journey as a person… Ask yourself 4 questions Where am I now? (Life, Knowledge, Skills…) Where do I want to be? How am I going to get there? How are you going to know when you get there? Imagine how Change might affect your journey Moving to another country An auto accident A competing new interest (…ponies, poetry, politics…)

OBJECTIVES HAVE PURPOSE Sense of direction Employees and managers Decision-making Strategy Basis for measuring performance Motivation Objectives work at many levels

VISION AND MISSION STATEMENTS Vision An ideal situation, e.g. a ranked amateur athlete Mission A clear purpose, e.g. to attend every track and field sporting event in the city Vision statements are lofty and long term ideals Mission statements help accomplish the vision

EXAMPLES OF SHORT VISION STATEMENTS Oxfam : A just world without poverty Alzheimer’s Association : Our vision is a world without Alzheimer’s Habitat for Humanity : A world where everyone has a decent place to live Oceana seeks to make our oceans as rich, healthy and abundant as they once were

MISSION STATEMENTS AFLAC (insurance): To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. Bristol-Meyers: To discover, develop and deliver innovative medicines that help patients prevail over serious diseases. Vision statements show WHAT (the ideal) Mission statements tell HOW

AIMS AND OBJECTIVES Aims are general and long term goals Objectives are specific and short term goals AIMS = MISSION STATEMENT (general) SMART criteria for objectives: Specific, Measureable, Achievable, Relevant and Timely

TACTICS AND STRATEGIES Strategy is a scheme to achieve aims Tactics are short term ways to achieve aims and objectives Market dominance by developing products is a strategy Increasing the range of colours for existing products is a tactic

IT’S CONFUSING Aims state what an organization wants, e.g. to become the primary supplier of a product Objectives state what an organization needs to achieve in order to get what they want, e.g. increased market share Strategies are big picture and long term actions that help an organization meet its objectives, e.g. expanding into overseas markets

ETHICAL OBJECTIVES Ethics are moral principles Morals are concerned with right and wrong Business ethics are behaviors that are morally correct An ethical business behaves in a socially responsible manner, e.g. treating employees fairly Examples of unethical: exploitation of customers, suppliers, the environment, or dishonesty

CORPORATE SOCIAL RESPONSIBILITY CSR means firms act morally towards stakeholders, e.g. a fast food company tidies trash on its block How it works Businesses know consumers avoid firms they don’t like Big Mistakes can cause consumers to stop buying products for extended periods of time Preventing Big Mistakes is arguably cheaper (and better!!) than the damage they cause Examples of Big Mistakes: Nestle – thalidomide BP – Louisiana oil spill Union Carbide – Bhopol India Disaster

WHY BE NICE? Improve corporate image (more business) Increased customer loyalty (more business) Cost savings from reduced packaging Improved staff motivation and morale How? CSR and Ethical Strategies: Accurate labeling and information Work in the community Care for the environment Fair employment practices The cost of compliance can be high: lower profits and shareholder conflict

DEEPENING ON ETHICS AND CSR Read pages 48 to 53 Define the following terms: Aim v objective CSR Ethics Mission statement Objectives SMART (criteria for objectives) Strategy v tactics Vision