Chapter 6 - stakeholder objectives and mission statement PDF

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Chapter 6 - Stakeholder objectives and mission statements

Mission statement: • Gives a general idea what the business exists to do and its purpose is to set this down for the benefit of all stakeholders. • It is a qualitative statement, it can be used as a form of marketing and usually state the overall aims of the business.

Aims/goals: • More specific than a mission • Used as alternative terms for the main objective Principle aims - Survival - Breaking even - Share of market/growth - Profit (more long term)

Objectives: • Achieve their main aims and goals by setting various specific objectives • Provide a sense of direction for the business • Use as a possible motivational force for all employees • An aid to controlling existing and future operations in the business

Strategic objectives: how a business plans to achieve its aims or goals; often a long-term approach Tactical objectives: the day-to-day (short term) objectives needed to ensure the strategic objectives are achieved Setting objectives: SMART

- Specific —> important that everyone understands what the target is - Measurable —> objective statement should contain a type of measurement to ensure that success or failure can be measured

- Agreed —> agreement between different departments makes it more likely to be achieved - Realistic —> important to be realistic to avoid employees becoming demotivated - Time —> timetable specifying the period over which an objective is to be achieved. A time constraint aids measurement and tends to focus people’s minds

Constraints: • circumstances/business environment may hinder progress and in some situations may require a complete change in direction Internal

External

Lack of finance to meet the chosen objectives

Changes in the law that affect the operation of the business

Poor communication within the business

The state of the economy

A conflict of interests between departments within the business

The behaviour of competitors

An industrial dispute with the workforce

The opinions and behaviour of external stakeholders

Changing objectives: • As circumstances change a business may need to adapt their objectives • May alter depending on priorities and circumstances • There could be a contingency plan in place to deal with extreme circumstances...