Lecture Notes: Vision & Mission, Business Objectives, Strategic/Tactical/Operational Goals, CSR and External/Internal Influences

A set of Q&A flashcards covering vision vs. mission, objectives (growth, profit, shareholder value, ethics), strategic/tactical/operational levels, CSR, and the internal/external factors that influence organizational goals.

What is the purpose of a vision statement?

To outline an organization’s aspirations in the distant future (its attainment of success).

What is a mission statement, and how does it differ from a vision statement?

A mission statement declares the organization’s underlying purpose and core values; it tends to be qualitative, not time-based, realistically achievable, and guides decision making and daily operations, while a vision is a long-term aspirational view of what the organization wants to become.

How do vision and mission differ in terms of time horizon?

Vision is very long-term; mission focuses on the immediate time period.

Which statements are updated more frequently, visions or missions?

Mission statements are updated more frequently than vision statements.

What daily function does a mission statement serve?

It describes what the business does each day and why it does this, outlining beliefs, guiding principles, and daily operating behavior.

List common limitations of vision/mission statements.

They can be public relations stunts, time-consuming to create or change, hard to cater to all business dynamics, may not suit part-time/temporary contracts, and changing beliefs/behaviors can be lengthy.

Name the four Common Business Objectives.

Growth, profit, protecting shareholder value, and ethical objectives.

How should objectives relate to the mission statement?

Objectives should be specific and quantifiable and aligned with the organization’s mission.

Why are objectives important? (three reasons)

To measure and control performance, to motivate managers and employees toward a common goal, and to direct decision-making and strategy.

How is growth typically measured?

By the increase in sales revenue or market share; revenue as a percentage of the industry's total sales.

What is profit and why is it a main objective?

Profit is the main objective in private sector organizations; it provides an incentive to take risks and, in incorporated businesses, profits are distributed as dividends to shareholders.

What does 'protecting shareholder value' mean, and who is responsible?

Generating long-term value for shareholders; the board of directors is responsible for balancing short-term dividends with long-term value.

What are ethical objectives?

Moral principles guiding decision-making and business strategy; actions considered morally correct, affecting workers, customers, shareholders, and the environment.

Give examples of ethical objectives aligned with circular business models.

Waste disposal in an environmentally safe manner; fairer trade with low-income countries; increased recycling; reducing pollution via greener technologies.

What is an ethical code of practice?

A published set of beliefs and philosophies that outlines what is acceptable behavior, providing a framework and uniformity in the workplace.

What are strategic objectives?

Medium-to-long-term plans of action to achieve the organization’s strategic objectives.

What are tactical objectives?

Short-term goals (often the next 12 months) used to achieve strategic objectives; may include survival in challenging periods.

Name examples of strategic objectives related to market performance.

Improving market standing, enhancing image/reputation, and increasing market share.

How do aims, strategic objectives, tactical objectives, and operational objectives relate in the hierarchy?

Aims are long-term; strategic objectives are medium-to-long-term; tactical objectives are short-to-medium term; operational objectives are day-to-day actions.

What is CSR?

Corporate Social Responsibility; conscientious consideration of ethical and environmental practices related to business activity to impact positively on society.

List internal factors that influence objectives.

Corporate culture, size and type of organization, age, finance, risk profile, crisis management, leadership and ownership structure.

List external factors that influence objectives (STEEPLE).

State of the economy, government constraints, pressure groups, new technologies, societal/ethical expectations, legal requirements, environmental considerations (and related factors in STEEPLE).

How can operating in different countries affect CSR?

What’s acceptable in one country may be undesirable in another; CSR is subjective and culturally dependent.

What initiates changes in objectives?

Changes in strategic direction, internal/external environment, societal expectations, and when original goals are achieved requiring new ones for a sustainable future.

What does the STEEPLE framework stand for?

Social, Technological, Economic, Ethical, Political, Legal, and Ecological factors.

What are the internal factors that influence objectives (examples)?

Leadership changes, HR, organizational structure, product success/failure, finance, operations, and differences between private vs public sector.

What are the external factors that influence objectives (examples)?

Economic cycles, government policy, pressure groups, technology advances, ethical expectations, legal changes, and ecological considerations.

How do CSR and ethics relate to competitive advantage?

A good reputation from socially responsible behavior can attract investors, customers, and employees, supporting long-term profitability.