IB Business and Management 1.3 – Organisational Objectives

IB Business and Management

1.3 – Organisational Objectives

Learning Outcomes

• Explain the importance of objectives in managing an organisation

• Explain the purpose of mission and vision statements

• Analyse the role of vision and mission statements in an organisation

• Distinguish between Objectives, strategies and tactics and discuss how these interrelate

• Evaluate the need for firms to change objectives in response to changes in the internal and external environment (HL)

In a nut shell…..

Task…..

• In pairs• Write your answer to the IB exam question:

• Define the term ‘objective’ [2]

Remember what you need to do in order to gain the full 2 marks in a definition question

What is an objective?

• An objective is a target or goal. This is a desired result that a person or group of people envisage, plan and commit to.

Objectives Should be SMART

What does SMART stand for?

• Specific• Measurable• Agreed• Realistic• Timed

Personal Objectives

• Objectives are not restricted to businesses, many individuals set objectives too…..

Examples of types of objectives:• Weight loss• Grades• Saving money

Can you think of any others?

Are these objectives SMART?

• To lose 15kg within 2 weeks• To save $600 dollars within the

next year• To achieve at least 4 grade 7’s in

the IB in June• To get fitter by Christmas

Task – 2 minutes

• Write 2 SMART objectives for yourself

BUSINESS OBJECTIVES

Hierarchy of Objectives…..

Corporate Aims

Strategic Objectives

Tactical/Operational Objectives

Individual Objectives

Why do the arrows flow in this direction?

Task

• Open the document ‘The Differences between Strategic and Tactical Objectives’

• Drag and drop the descriptors into the right side of the table.

Types of Strategic Objectives

• Profits• Liquidity• Revenues• Market Share• Repeat customers• Brand Recognition• Customer Satisfaction• Growth• Shareholder value• Return on Investment• Environmental• Ethical

Task -

• As you know, tactical objectives are set at departmental level.

• Write a list of the types of tactical objectives that might be set by each of the following departments:– Production/Operations– Finance– Human Resources– Marketing

ACHIEVING OBJECTIVES

Achieving Objectives

Corporate Aims

Strategic Objectives

Tactical/Operational Objectives

Individual Objectives

Achieved using Tactics

Achieved using Strategies

Task

• Open the document ‘Objective, strategy or tactic’

• Decide whether they are:

• Strategic Objectives• Tactical Objective• Strategy• Tactic

Importance of Objectives….

• Why are Objectives so important?

To M

easu

re

and

Cont

rolTo MotivateTo Direct

To Aid Decision making

Questions…..

1. What are the differences between aims and objectives?

2. What does SMART stand for?3. What are the differences between Strategic and

Tactical Objectives 4. What are the differences between a Strategy and a

Tactic?5. For BSM…….. Give a likely:

a. A Strategic Objectiveb. A Tactical Objectivec. A Strategyd. A Tactic

VISIONS AND MISSIONSWHAT’S THE DIFFERENCE??

Let’s rewind….. What do businesses need to do before they can write meaningful objectives……

Vision Vs Mission

Vision• Future based• Answers the question

‘Where is the business going?’

• Focus on the long-run• Is inspirational and

should shape strategic decision making

Mission• Based in the present• A declaration of the

core values of the company

• Answers the question ‘Why does the business exist?’

• Communicated to internal and external stakeholders

Mission Statements (according to Vern McGinnis) should …..

1) define what the organization is and what it aspires to be2) be limited enough to exclude some ventures and broad enough to allow for creative growth3) distinguish a given organisation from all others4) serve as a framework for evaluating both current and prospective activities,5) be stated in terms sufficiently clear to be widely understood throughout the organisation.

WHOSE VISION????

Let’s get the whiteboards out!!!

The Rules

• 5 points for a correct answer• 1 point for a feasible guess!!

A house point for the winner

Whose Vision?

“Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”

Whose Vision?

‘Our goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Our challenge is to achieve this in an increasingly dynamic and competitive environment.’

Whose Vision?

‘To be the worldwide leader in sharing delicious tastes and creating joyful memories.’

Whose mission?

• Our mission is to be the world's premier consumer products company focused on convenient foods and beverages

Whose mission?

• To organize the world‘s information and make it universally accessible and useful.

Whose mission?

Whose mission?

• to enable people and businesses throughout the world to realize their full potential.

Whose mission?

• Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

Whose mission?

• To bring inspiration and innovation to every athlete* in the world. *"If you have a body, you are an athlete."

Whose mission?

• To give people the power to share and make the world more open and connected.

Task – Lets be creative

• In pairs• Pick a company of your choice• Can you write a mission statement for

them?• Try to be inspirational

Good Mission?

McDonald's brand mission is to be our customers' favorite place and way to eat and drink.

Saving people money so they can live better.

The Mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel.

Task….

What are the key benefits to a business of having a vision and mission statement?What might the criticisms of vision/mission statements be?

Video

• Watch the video “The benefits of vision, mission and objectives’

Homework Task

• Research and find mission statements for 3 different businesses.

• Try to find concise and unusual mission statements

• If they contain the company name you can just insert ‘Company X’ instead

• Add them to the Google doc