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1.3 Organizational Objectives

The document discusses key concepts related to organizational strategy including vision, mission, aims, objectives, strategies, tactics, CSR, SWOT analysis, Ansoff matrix, market penetration, market development, product development, and diversification. It provides examples and definitions for each concept.

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14 views

1.3 Organizational Objectives

The document discusses key concepts related to organizational strategy including vision, mission, aims, objectives, strategies, tactics, CSR, SWOT analysis, Ansoff matrix, market penetration, market development, product development, and diversification. It provides examples and definitions for each concept.

Uploaded by

Sovann
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Vision

- A vision is an organization’s long term aspiration where it ultimately wants to be in the


future

Example: Apple’s vision statement: “We believe that we are on the face of the earth to make
great products and that's not changing. “

Mission
- A mission statement defines what an organization is, why it exists, its primary
customers, products and services and the geographical location in which it operates in

Example: Apple’s mission statement: to bring the best user experience to its customers through
its innovative hardware, software, and services

Vision Mission

- Focus on the future direction of the - Focus on the organization’s reason for
organization existence
- Abstract statement to inform where - Concrete and practical statement to
the organization ultimately wants to be guide the actions of the organization
- Strategic - Incorporates measurable and
- Broad statement meaningful criteria
- It describes how an organization will
execute its vision
- Narrow and specific statement

Aims
- Aims are the long term goals of an organization

Objectives
- Objectives are the targets an organization is trying to achieve
- Profitability
- Market share (everyone wants to be market leader)
- Improve efficiency in production
- Improve customer satisfaction
- Ethical objectives
- innovation

Ethical objectives
- Ethics are the moral principles that guide decision making and strategy for an
organization (example: implementing CSR)

Strategies
- Strategies are long term plans of action that a business use to achieve its aims and
objectives

Tactics
- Short term plans of action that the business use to achieve their targets
- Specific actions

Corporate social responsibility


- CSR refers to an organization’s duties to its internal and external stakeholders by
behaving in a way that positively impacts society as a whole
- Societal norms, expectations and values will change. Media exposure, pressure group
action and educational awareness would mean that organizations may need to review
their CSR practices and policies.

Example - Mcdonald’s CSR: “we are breaking new ground with our collaborative effort to source
sustainable beef. We will continue to work with multiple stakeholders to develop practical solutions
to increase recycling in our restaurants and across the industry. We will continue to meet our
customers’ needs for choice and balanced menu options, including fruits and vegetables.”

Advantages Disadvantages

- Can increase employee motivation - Compliance costs


and productivity - Extra management time required
- Easier to recruit and retain employees - Lower profits available to be
- Reduce negative publicity from news distributed to shareholders (create
media and pressure groups resentment with investors)
- Gain competitive advantages over - If competitors also pursue CSR, the
other firms that do not practice CSR firm will not have any competitive
- Long term profitability advantage
- Avoid government intervention
SWOT analysis
- SWOT analysis is a management tool used to assess the internal strengths and
weaknesses, and the external opportunities and threats of a business

Strength Weakness
- Strong brand name - Unhealthy food menu
- Competitive pricing - Limited menu
- Employees are well trained - Bad publicity due to wage issues and
- Innovative in producing new products sourcing of materials

Opportunities Threats
- Developing markets expansion - Global economic recession
- Coming up with healthier choices for - More health conscious customers
their customers - Intensifying competition

Advantages Disadvantages

- Simple and useful visual tool to assist - Needs to be revised regularly due to
managers in the planning process changes in the internal and external
- It examines strategic opportunities for business environment
an organization - Subject to biases because the
analysis is based on opinions and not
facts and figures

Ansoff matrix
- It is used by businesses to identify and decide their product and market growth
strategies

Market penetration
- Focuses on existing markets and existing products, i.e the firm focuses on what it knows
and does well.

Market development
- The growth strategy where a business sells its existing products into new markets, i.e.
the product remains the same, but it is sold to a new group of customers.

Product development
- A growth strategy where a business introduces new products into existing markets, i.e it
targets new products at existing customers.

Diversification
- Involves businesses marketing completely new products to new customers.

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