1. 1 Bruce Bowhill University of Portsmouth ISBN: 978-0-470-06177-0 © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

2. Chapter 13 Objectives, Strategy and Influences © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

3. 3 The mission statement is a statement of the purpose of the organisation. It should provide a vision or desired future state of the organisation and it is against this vision that more detailed objectives can be written. It can also provide a statement of the key values of the organisation and attitudes towards key stakeholders. © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

4. 4 Easyjet ‘To provide its customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this they will develop their people and establish lasting relationships with their suppliers.’ © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

5. 5 Shareholder value refers to the concept that the primary goal for a company is to enrich its shareholders (owners) by paying dividends and/or causing the stock price to increase. A number of organisational mission statements however indicate a need to pursue multiple objectives. © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

6. 6 Setting objectives –Identify dimensions and appropriate measures of these dimensions. –care must be taken to ensure that they are understandable and clearly communicated. –Comply with ‘SMART’ principles, in that they should be specific, measurable, achievable, relevant and timely. © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

7. 7 Hierarchy of objectives Mission Corporate objectives Unit objectives © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

8. 8 Gap analysis © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

9. 9 Strategic management –Planned strategies –Emergent strategies –Incrementalism –Realized strategies © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

10. 10 Influences on the mission statement, corporate goals and strategies –Stakeholders –Organisational culture –‘Boundary system’ Business ethics Corporate social responsibility Corporate governance © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

11. 11 Stakeholders –Identify stakeholders and their objectives –Taking into consideration stakeholders views Shareholder value maximisation therefore only consider shareholders? Achieving shareholder value maximisation through taking into consideration the objectives of different stakeholders? Value all stakeholders interests? © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

12. 12 Stakeholder mapping © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

13. 13 Influence of organisational culture –Internal influences Key values, beliefs and assumptions that underpin the way each organisation operates –External influences External values and belief systems can change e.g. increased public support for environmentally friendly policies National and regional cultures may be different, with stakeholders in different societies having different expectations. © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

14. 14 Internal influences Organisational culture Typical features DefenderConservative, often inward looking and risk averse ProspectorInnovative organisations prepared to take a risk and to consider change. AnalyserRational analysis and planning is considered important. ReactorTend to live from crisis to crisis, reacting to events rather than planning for them. Typologies of culture – Miles and Snow (1978) © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

15. 15 Internal influences Organisational culture Typical features PowerThe organisation is dominated from the centre RuleThe organisation is dominated by rules and is rather bureaucratic in its operations, working through committees and the hierarchy. TaskThe emphasis is on solving problems and producing PersonThe culture is people oriented Typologies of culture – Handy (1976) © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

16. 16 Ethics About right and wrong. Moral guidance –Societal view The extent to which society considers business should take account of stakeholders –Corporate social responsibility Ways in which an organisation exceeds its minimum obligations to stakeholders – the environment, suppliers, employees –Individual level Identifying an ethical dimension. Analysing problems using available principles Proposing a response Five-stage test © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill

17. 17 Corporate governance Rules, processes or laws by which businesses are operated, regulated and controlled. Relationship between the board, management, shareholders and other relevant stakeholders. Aim to protect shareholder rights; enhance disclosure and transparency; effective functioning of board; efficient legal and regulatory enforcement © 2008 John Wiley & Sons Ltd. www.wileyeurope.com/college/bowhill