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Why are Mission/Vision statements often criticized?
Too vague: Either they are way too broad or difficult to measure
Many times the statements do not align with each other
Vision statements are long term thus often don´t materialize
Probably are not taken seriously by the stakeholders i.e. the employees
What are the 4 key objectives?
Growth
Profit
Protecting shareholder value
Ethical objectives
What are the 3 forms of objectives?
Tactical: Easier to change or reverse than strategic ones
Operational: Day to day targets of departments in a organization
Strategic: Targets for the whole organization, require greater human and financial resources compared to the other two
Profit Objective:
Making a profit is a fundamental objective for most businesses. Profitability is the ability to generate more revenue than expenses, resulting in a positive net income. It is a key indicator of financial success and sustainability.
Growth Objective:
Business growth involves expanding a company's operations, increasing its market share, or diversifying its product or service offerings. Growth can lead to increased revenue and profitability, as well as opportunities for economies of scale and increased market influence.
Ethical Objective:
This involves morally right treatment of all stakeholders and implementation of more ethical and moral principles in their business. For example, treating employees fairly and being eco-friendly, etc.
Protecting shareholder value Objective:
It is about safeguarding the interests of the owners of a limited liability company.
It is the responsibility of the CEO and board members/directors based on their strategic plans to earn a healthy return on the capital invested.
It involves long-term and short-term objectives including survival, profit and growth in order to give the owners a financial reward
It can also include market share and CSR
Donut economies
Sociocultural sustainability(people)
Environmental sustainability(planet)
Economic sustainability(profit)
Why implement CSR?
Improves corporate image leading to more business
Increased customer loyalty leading to more business
Cost savings from reduced packaging
Improves staff motivation and morale
Satisfying customer expectations
Increasing profits
Impacts of implementing ethical objectives?
In the long run, the business will experience benefits
In the short run, the business will experience an increase in costs and some workers might be resistant to change
Competitors may have to respond to maintain their own market position
Suppliers may have to respond to protect the orders depending on their policies and if the businesses would buy from them considering their own ethical objectives
Customers are more likely to trust the business more and there will be an increase in brand loyalty
What impacts changes in corporate responsibilities?
Societal norms
United Nations Development Goals
Global concerns
What is the Ansoff Matrix model?
A model used to show the degree of risks associated with the 4 growth strategies of:
Market penetration
Market development
Product development
Diversification
What is market penetration?
Involves selling more of the same products and services to pretty much the same customers or at least the same types of customers
What is product development?
Involves selling new products to the same market, often to the same existing customers
What is market development?
involves selling existing products to new customers. Could be by opening another branch in a different location but selling the same products
What is diversification?
Most risky growth strategy. It involves selling new products in a new market. The business is thereby getting involved in an activity of which it has little to no knowledge of which opens up more room for errors.
What factors determine corporate objectives?
Corporate culture
Size and legal form of the business
Public sector or private sector business
Well-established business or not
Note 
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