IB BM Unit 1.3 Organisational Objectives

Aims

Long-term goals of a firm, often expressed in the firm's mission statement. They are a general statement of a firm's purpose or intentions and tend to be qualitative in nature

Corporate social responsibility (CSR)

The conscientious consideration of ethical and environmental practices related to business activity

Ethical code of practice

Documented beliefs and philosophies of an organisation

Ethics

The moral principles that guide decision-making and strategy

Holding company

A business that owns a controlling interest in other diverse companies, i.e. it owns enough shares to be able to take control of the other businesses

Mission statement

Declaration of an organisation's overall purpose. It forms the foundation for setting the objectives of a business

Objectives

Relatively short term targets of an organisation

SMART objectives

Targets that are specific, measurable, achievable, realistic and time contrained

Strategies

Plans of action that firms use to achieve their targets

Subsidiaries

Firms that are partly or completely owned by another business (the 'parent' company) usually by holding 51% or more of the shares

SWOT analysis

An analytical tool used to assess the internal strengths and weaknesses and the external opportunities and threats of a business decision, issue or problem

Tactics

Short-term plans of action that firms use to achieve their objectives

Vision statement

An organisation's long-term aspirations