IB Business Management SL - 1.3. Organizational objectives

Business aims

They define the firm’s purpose and long-term goals, often expressed in the mission statement

Business objectives

Clearly defined and measurable targets on how to achieve the business’ aims, often expressed as SMART.

SMART objectives

Specific: target a specific area for improvement.
Measurable: quantify and indicator of progress to judge if the objective has been achieved.
Agreed upon
Realistic
Time-constrained: specify the time period

Strategic objectives

The senior leadership sets long-term goals. Affects the whole company.

Tactical objectives

Middle management develops medium-term action plans. Affects departments.

Operational objectives

Lower management develops short-term action plans. Affects teams.

Mission statement

Specifies the aims and objectives of the business in the present. Describes core activities, moral and ethical issues, etc.

Vision statements

Specifies the long term aspirations of a business, and describes how the organization wants to be perceived.

Corporate social responsibility

The consideration of ethical and environmental issues relating to the business activity.

Stakeholders

Individuals or groups that may hold interest in the business or may be affected by its decisions

Internal stakeholders

Directly involved in running the business. Shareholders, directos and senior management, employees.

External stakeholders

Simply affected or interested in the activities of the business. Suppliers, customers, communities, pressure groups, competitors, and government.

External factors

Outside influences that can impact a business, such as laws, market trend, or political changes.

SWOT analysis

Aims to identify the key internal strength and weaknesses, and external opportunities and threats.

PEST analysis

Evaluates opportunities and threats on Political, Economic, Social, and Technological Factors.

STEEPLE analysis

The same analysis as PEST, but also includes Legal, Environmental and Ethical considerations

Growth strategy

Should be adopted when the company believes it doesn't have weaknesses in other areas. In the quadrant of strength and opportunities

Altruistic attitude

the company genuinely does it for social benefits, they actually care about the impact of the company

Strategic attitude

businesses ought to be socially responsible only if such actions help them to become more profitable.

Self-interest attitude