1.3 Organizational objectives

outlines an organization’s aspirations in the distant future.

refers to the declaration of an organization’s overall purpose. It forms the foundation for setting the objectives of a business

-“What do we want to become” -Focused on long term -Mission statements are updated more frequently than vision statements -Do not have to be actual targets that must be achieved

-“What is our business” -Focus on medium or long term -Mission statements are updated more frequently than vision statements -Allow people to see what could be -This tends to outline the values of the business (beliefs, etc)

Aims are the general and long-term goals of an organization. They are broadly expressed as vague and unquantifiable statements. They serve to give a general purpose and direction for an organization.

Objectives are the short-to-medium term and specific targets an organization sets in order to achieve its aims. They are more specific and quantifiable.

-To measure and control - set boundaries for business activity -To motivate - reach a common goal -To direct

long-term plans of action to achieve the strategic objectives of an organization.

short-term methods used to achieve an organization’s tactical objectives.

Operational strategies - day-to-day methods used to improve efficiency Generic strategies - those that affect the business as a whole Corporate strategies - targeted at the long term goals of a business

-What business wants to achieve -Not necessarily time-bound -Vague or abstract goal -Set by senior leaders -What a business wants to happen

-What the business has to do to achieve aims -Time-bound -Specific and measurable target -What a business needs to happen -Set by managers or their subordinates

are short-term goals that affect a section of the organization. They are specific goals that guide the daily functioning of certain departments or operations. They tend to refer to targets set up for months, such as: -Survival -Sales revenue maximization

Strategic objectives are the longer term goals of a business some examples include: Profit maximisation Growth Market standing Image and reputation

-Corporate culture -Type and size of organization -Private versus public sector organizations -Age of the business -Available finance -Risk profile -Crisis management

State of the economy Government constraints The presence and power of pressure groups New technologies

Ethics are the moral principles that guide decision-making and strategy, they define what is right or wrong from society’s point of view

The self interest (non-compliance) attitude (Generate profits for their owners) The altruistic attitude (Humanitarian and unselfish behaviour) The strategic attitude (Only be socially responsible if such actions help them become more profitable)

Strengths - Internal factors that are favourable compared with competitors (e.g. brand loyalty) Weaknesses - Internal factors that are unfavourable when compared with rivals (e.g. competitive disadvantages) Opportunities - External possibilities for future development (e.g. rapid economic growth) Threats - External factors that hinder the prospects for an organization (e.g. technological breakdowns)