Chapter 4 business objectives 6. plan and implement the decision.

Culture is a way of doing things, it is

7. review its success against its original about people and how they perform
objectives. and deal with others. it is also how
adaptable they are in the face of
Why corporate objectives might change. It is how aggressive they are
Relationship between mission, objectives
change. in pursuit of objectives.
strategy and tactics
1. A newly formed business may have
Aims and objectives provides basis and focus
pasted the survival objective and the The size and legal form of the
for business strategies. It is the long-term
owners now wish to pursue objectives business
plans of action.
of growth and increased profits. Owners of small businesses may be
Without clear objectives, managers will not be 2. The competition and economic concerned only with a satisfactory
able to make strategic decisions. environments may change. the entry level of profits, however larger
into a market with powerful rivals or businesses-controlled directors are
without clear objectives decision-making
the start of an economic recession more concerned by rapid business
would lack direction and a means of assessing
may lead to switch from growth to growth in order to increase the status
success.
survival as its main aim. and power of the managers.
Objectives and decision-making 3. a short term objective of growth in
sales or market share might be Public sector private sector
Effective decision making requires clear adapted to a longer term objective to businesses
objectives post op managers cannot decide maximize profits from the high level of States-owned organizations tend not
future plans of action it's a do not know which sales to have profits as a major objective.
direction they want to take the business in.
Factors that determine the corporate Quality of service is used to measure
The stages in decision-making are: success.
objectives of a business
1. Set objectives.
corporate culture The number of years the business
2. Access the problem or situation.
Corporate culture can be defined as has been operating.
3. gather data about the problem and
the code of behavior and attitudes Newly formed businesses are driven
possible solutions.
that influence the decision-making by the desire to survive, however once
4. consider all decision options.
style of the managers and employees. they always established the business
5. make the strategic decision.
may pursue objectives of growth.
 each department, manager, and Ethical code (code of conduct): a document
Divisional, Departmental, and employee. detailing a company's rules and guidelines on
individual objectives staff behavior that must be followed by all
Once corporate objectives have been communicating objectives employees.
established, they need to be broken Evaluating ethical decisions
down into specific targets separate Communication of corporate
divisions, departments, and objectives- and translating these Disadvantages:
individuals. This is done in order to into individual targets- is essential
for the effective setting of aims  Using ethical and fair-trade suppliers
create strategies for action so that
and objectives. can add to costs.
each Department knows what to focus
If employees are communicated  not taking bribes to secure business
on when achieving objectives.
with- and involved in the setting contracts can lead to decrease in
(see hierarchy of objectives pg.46)
of individual targets- then these sales.
benefits should result in:  limiting advertising to reduce pestor
The divisional objectives must be set
 Employees and managers power may result in a loss in sales.
by senior managers to ensure:
achieving more.  Paying fair wages would increase
 Coordination between all
 employees seeing the overall wage costs and reduce the firm's
divisions.
plan. competitiveness against businesses
 consistency with corporate
 creating shared employee that exploit workers.
objectives.
 adequate resources are provided responsibility. Advantages:
to allow for the successful  manage is more easily staying in
achievement of the objectives. touch with employee’s progress.  Potential expensive court cases could
be avoided.
Ethical influences on business objectives  bad publicity could be avoided,
Management by objectives
and decisions ensuring no customers are lost and
there is no reductions in long term
Management by objectives: The growing acceptance of corporate social
sales.
This is a method of coordinating responsibility has led to businesses adopting
 ethical businesses are more likely to
and motivating all staff in an an ethical code to influence the way in which
be awarded government contracts.
organization by dividing its overall decisions are taken.
aim with his specific targets for
 well qualified staff are attracted to
companies that work ethically and
socially responsibly.