1. 1.3 Organizational Objectives

2. Vision Statement
A statement of what the organization would like to achieve or accomplish in the long term.
McDonald’s Vision Statement:
“Where the world buys more McDonald’s than any other fast food.”

3. Mission Statement
A statement of the business’s core aims, phrased in a way to motivate employees and stimulate interest by outside groups.
McDonald’s Mission Statement:
“McDonald’s aims to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value so that we make every customer in every restaurant smile.”

4. Difference of Vision vs Mission
Vision statement describes the future if the mission is accomplished.
Mission statement outlines the purpose of the organization and should answer 3 key questions: What do we do? For whom we do it? What is the benefit​?

5. Compare the Vision & Mission
Organization
Vision Statement
Mission Statement
Nokia
Our vision is a world where everyone is connected.
Nokia exists to connect people with each other and the information that is important to them with easy-to-use and innovative products. Nokia aims to provide equipment, solutions and services for consumers, network operators and corporations.
Does the mission statement answer the 3 questions?
What do we do?
For whom do we do it?
What is the benefit?

6. MPHS Mission Statement
We exist to inspire students with a passion for learning and a commitment to personal integrity and academic excellence. Students will be empowered to become self-confident, creative, socially responsible and globally aware for learning.

7. What is the point?
Mission and vision statements guide companies in their sense of purpose.
Helps them develop more specific business objectives, too.
Inform outside groups of their purpose.
BUT....
They can be too vague
Used to make stakeholders “feel good”
Can be similar to everyone else in the industry

8. The Hierarchy of Objectives
To maximize shareholder value
To increase profits of all divisions by 10% per year
Within one regions, increase market share by 10% and cut overheads by 5%
Marketing: increase profit margin 7%
Finance: reduce long-term borrowing 5%
R&D: develop one innovating product each year
Marketing:
- Increase sales by 5% for each client
- Capture 5 new clients each year
Aims
Corporate
Objectives
Divisional Objectives
Departmental Objectives
Individual Targets

9. Aims, Objectives, Strategies, oh my...
Aims – the core business strategy is expressed
Divisional/Operational Objectives – the starting point to help us reach our aim
Strategy – how to make the objectives happen which can be long-term or short- term (tactical)

10. Strategic VS Tactical Strategic – to develop new markets abroad
Tactical- to sell product in different sized packaging
Long term
Short to medium term
Difficult to reverse once made – have committed resources to make it happen
Reversible, but there are still costs involved
Directive taken by directors/senior managers
Directive taken by senior managers and subordinates with authority
Cross-functional – involves all major departments (HR, Finance, Mrkting, Operations)
Impact of tactical decisions is often only in one department.

11. Specific Measurable Achievable Realistic or Relevant Time Specific
SMART
Effective objectives are SMART
Specific
Measurable
Achievable
Realistic or Relevant
Time Specific

12. Common Aims for a Corporation
Profit maximization
Make the most profit possible
Problems: short-term high profits may encourage competitors to enter the market
By maximizing profit you may generate less sales reducing your market share
May not be the priority of a small business owner
This may not make all stakeholders happy.
Profit satisfying
Make enough profit to keep the business owner happy

13. Common Aims for a Corporation
Growth
Rapid growth can lead to other problems
Can cause loss of focus
Increasing market share
Retailers may be more likely to stock your brand
Brand leader status
Survival
Maximizing short-term sales revenue
Could result in less profit if sales price is reduced to achieve sales increase
Maximizing shareholder value
Increasing dividends paid and share price benefits stockholders but may not benefit other stakeholders

14. Ethical Objectives
Objectives based upon a moral code for a business. “Doing the right thing” while conducting business.
Is a business being socially responsible and at what cost?
Does ethics guide the business decisions?

15. Corporate Social Responsibility (CSR)
This concept applies to those businesses that consider the interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities, and the environment.
How have we seen CSR in the market place?

16. Measuring CSR with Audits
Environmental Audit: pollution generation energy use recycling programs
Social Audit: health and safety records contributions to community & charities conducting business with ethical sources employee benefit schemes
Not included: Financial concerns

17. Factors Influencing Objectives
Conflicts between objectives
Growth vs profit; short-term vs long-term; stakeholder conflicts
Corporate culture
Size and type of business
Large, small, sole proprietorship, corporation
Public or Private sector
New business or well-established

18. CSR – Corporate Social Responsibility
Why corporations respond:
Increasing publicity from pressure groups
UN Millennium Development Goals (120 countries agreed to “environmentally sustainable growth”
Global concern over climate change
Legal changes – no longer can pay low wages or waive responsibility for your products

19. Examples of CSR:
Apple, Inc. conducts a social audit of its working conditions in China.
Nike no longer uses child labor in foreign countries.
Can you name others?

20. Why objectives may change
No longer need to survive; now need to grow
Senior management may quit causing a refocus in other areas while a replacement is found
External environment may change – their may be a recession
Short-term objectives may be replaced with long-term objectives
Laws and regulations may be changed.

21. Changes should consider:
Is the motivator significant enough to warrant a change in the objectives?
What is the risk of not adapting or responding?
What is the cost or consequences of the new objective for the staff?
Can we manage the change?

22. INTERNAL VS
EXTERNAL INFLUENCES
(SWOT)

23. Internal vs External Constraints
Your organizations structure
Financial considerations
Labor
Attitudes of workforce – resistant or acceptance of change
External:
The current business cycle (prosperity, recession, recovery or depression)
Changes in legislation

24. SWOT
SWOT Analysis matches its resources and strengths with its competitive environment.
S Strengths
W Weaknesses
O Opportunities
T Threats

25. Strengths Internal factors that are advantages Experienced management
Product patents
Loyal workforce
Extensive product range

26. Weaknesses
Internal factors that are seen as negative
Poorly trained workforce
Limited production capacity
Aging equipment

27. Opportunities
External factors from market to competitors
New technologies
Export markets expanding faster than domestic markets
Lower interest rates
Increased consumer demand

28. Threats
External factors focused on business and economic environment
New competitors in the marketplace
Globalization driving prices down
Changes in law regarding product
Changes in government policy

29. SWOT
Internal
Strengths
Weaknesses
Opportunities
Threats
External

30. Risky Growth Strategies​?
ANSOFF Matrix

31. Ansoff's Matrix
A model used to show the degree of risk associated with the four growth strategies:
Market penetration
Market development
Produce development
Diversification

32. Sell more of what you already sell to the same people.
Ansoff's Matrix
Market penetration
Achieving higher market shares in existing markets with existing products.
Sell more of what you already sell to the same people.
This is least risky.

33. Ford passing Honda with an eye towards catching Toyota in total market share.
Market Penetration
Lowest Risk

34. Market development Ansoff's Matrix
Selling existing products in new markets.
Sell more of what you already sell to different people – maybe in a different country or region.
This is more risky.

35. Market Development Selling EXISTING products into NEW markets
Burger King expanding into foreign markets. Expecting 80% of new growth to be overseas. High expectations for the Asian market
Market Development
Moderate Risk

36. Product development Ansoff's Matrix
Alter an existing product or create a new product and sell in existing market.
Pepsi created Diet Pepsi and sold the new product into the same market as the old product.
This is even more risky.

37. Developing new products for a market you already serve.
Coke created new products:
Coke Zero
Coke with Lime
Cherry Coke
Caffeine Free Coke
Product Development
Higher Risk

38. Sell different things to different markets.
Ansoff's Matrix
Diversification
Selling different, unrelated products in new markets.
Sell different things to different markets.
This is the MOST risky.

39. Selling different and unrelated goods or services in new markets.
GE (General Electric)
Generation, transmission and distribution of electricity (e.g. nuclear, gas and solar), industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, and aviation services. It co-owns NBC Universal. Through GE Commercial Finance, GE Consumer Finance, GE Equipment Services, and GE Insurance it offers a range of financial services as well.
Diversification
Risky

40. Ansoff’s Matrix
A model used to show risk with the four growth strategies
Existing Products
New Products
Market Penetration
Sell more in existing markets
Product Development
Sell new products in existing markets
Lowest Risk
Higher Risk
Market Development
Sell existing products in new markets
Diversification
Sell new products in new markets
Moderate Risk
Risky
Increased Risk

41. One does not stand along
An Ansoff matrix cannot be used by itself because it does not examine internal and external influences on a business.
Ansoff Matrix
SWOT
STEEPLE

42. Ansoff’s Matrix
A model used to show risk with the four growth strategies
Existing Products
New Products
Market Penetration
Sell more in existing markets
Product Development
Sell new products in existing markets
Lowest Risk
Higher Risk
Market Development
Sell existing products in new markets
Diversification
Sell new products in new markets
Moderate Risk
Risky
Increased Risk