1. IB Business & Management
Topic 1 – Business Organisation and Environment

2. Learning Objectives
Explain the importance of setting objectives in managing an organisation
Explain the purpose of mission statements and vision statements
Distinguish between objectives, strategies and tactics and discuss how these interrelate
Analyse the potential conflicts between corporate objectives and why objectives might change over time
Examine the reasons why organisations set ethical objectives and analyse the advantages and disadvantages of these
Explain the different views that firms may take of their social responsibility in an international context
HL – Evaluate the need for firms to change objectives over time
HL – Discuss why a firm’s view of its social responsibilities and its strategies towards them may change over time

3. Business Objectives
Businesses of any size will benefit from setting clear objectives
Small businesses, sole traders, these objectives may not be written down but the owners will have a clear idea of what they want to achieve
Partners need to ensure they agree on objectives to ensure there are no future disagreements

4. Importance of objectives
Help to direct, control and review the success of business activity
For any aim to be successfully achieved, there has to be an appropriate plan or strategy in place to ensure that resources are correctly directed towards the final goal
Strategy could be constantly reviewed to check whether the business is on target to achieve its objectives
Both aims and strategies adopted will often change over time
A change of objective will almost certainly require a change of plan too

5. SMART objectives
Explanation
Example

6. Aims, objectives, plans and strategies
MISSION
CORPORATE OBJECTIVES
DIVISIONAL OBJECTIVES
INDIVIDUAL TARGETS

7. Aims, objectives, plans and strategies
Corporate aims are the long term goals which a business hopes to achieve
Core of a business’s activity is expressed