1.3 Business Objectives

What does the ‘why’ of an organization help provide? Why is it important?

It helps to provide the main purpose of the business. The ‘why’ is important as it helps the company to reach its goals, and employees feel that their work has a meaning. This is essential to motivation.

What do vision and mission statements help to accomplish?

They help employees to keep long-term goals and dreams in mind as they work through their operations. Because they serve as a central point of reference, they are also important during crises or turning points, when the company has a major challenge to stop or a decision to make.

Who should be serious and carefully word vision and mission statements?

senior management

What is the difference between mission and vision statements?

Vision statements are long-term goals to help motivate and inspire everyone involved with a company.

Mission statements state what the organization does, right now, to achieve its vision.

What is value in context form?

any benefit experienced by a stakeholder connected to the organization. how we perceive value is related to our individual and shared beliefs, assumptions and judgements.

When do you use the SMART criteria?

When concrete objectives are set lower in the business hierarchy

What can objectives relate to?

growth of the business, profits, market share, customer satisfaction, ethics and sustainability

How can a business increase their profits?

By increasing the revenue and decreasing the unit (average) cost of production

What does ‘value extraction’ mean?

Prioritising profits for shareholders

How can value extraction have been earned?

These profits may have been earned by paying workers below the living wage, cutting costs by using processes that damage the environment…

What does CSR mean?

Corporate Social Responsibility (CSR) is when businesses take responsibility for their impact on society and the environment, going beyond just making profits. It involves actions like ethical practices, charitable activities, and sustainable operations.

what does creating shared value (CSV) recognize?

CSV realized that helping with social and environmental problems related to a business can boost its profits. This is a key way to maximize profits.

What is the main idea of CSR (Corporate Social Responsibility) according to Paul Polman in "Net Positive"?

Businesses should create value for multiple stakeholders, not just maximize profit for one group. They should support growing people and places, respect global well-being, and care for the planet's health. Generative businesses improve society and the environment through their core activities, not just by following laws or chasing profits

What are the social responsibilities of a business in relation to human needs?

• Ethical practices

• sustainabilitity

• Human rights

• Employee well-being

How can a bakery support the wellbeing of local stakeholders?

By strengthening community networks, providing secure jobs with fair income, and addressing basic needs.

How can a bakery support the wellbeing of people worldwide?

By collaborating with bakeries globally, knowing its supply chain, paying suppliers fairly, and ensuring workers receive a living wage and work in good conditions.

What does CSR relate to besides social responsibilities?

Environmental responsibilities.

How can a bakery support its local ecosystem?

by planting gardens, using renewable energy, greening roofs, and recycling wastewater.

What are some global-ecological responsibilities a bakery might consider?

planetary boundaries, or the ecological ceiling

What should a business do to meet global-ecological responsibilities?

• reduce its CO₂ emissions by using more renewable energy

• reduce its water usage or recycle wastewater

• source its raw ingredients from farms using regenerative agriculture that promotes biodiversity

• use transportation methods that do not cause air pollution.

Advantages and disadvantages of CSR

Pros:

Higher Sales and Profits, Attracting Talent

Cons:

Cultural Change of a company is Hard, Higher Costs Initially

Difference between a strategy and a tactic w/ examples

Strategy: A strategy is a long-term plan to achieve a big goal. For example, a company might plan to become the market leader in five years.

Tactic: A tactic is a specific action taken to support the strategy. For example, running a special promotion to attract new customers this month.

What would a strategic plan require?

• Understanding the company’s vision and mission

• Researching the products and markets related to the business goals

• Thinking about how the plans will affect both local and global areas, including social and environmental impacts

• Looking at the company’s strengths, weaknesses, opportunities, and risks linked to the plans

• Identifying where the money will come from to support the strategy.

• Setting up checkpoints to track progress and adjust the strategy as needed

Shift to circular strategies: def of linear and circular production

Linear production takes resources from Earth to make products, which are then discarded.

Circular production minimizes waste by reusing the outputs as inputs, and the products are made with circularity in mind.

What are circular business models?

Circular business models aim to reuse and recycle things instead of throwing them away. They try to keep products in use longer to reduce waste and help the environment.

What are the principles of a circular economy?

1. Eliminate waste and pollution

2. Circulate products and materials

3. Regenerate nature

What are the types of circular business models?

Circular supply models:

Enable businesses to reduce new material inputs, replacing them with recovered or bio-based materials.

Resource recovery models:

collect waste material, sort waste into different materials, and transform into finished raw materials.

Product life extension models:

Focus on extending the time that a consumer uses products.

Sharing models:

Allow consumers to share use of products with strangers, reducing the new inputs needed for the products that might be under-utilised by the consumer.

Product service models:

Involve selling the service for using a product rather than selling the product itself.

What are the limitations of circular business models?

1. Underdeveloped systems for waste recovery: There needs to be enough recovered waste, at a reasonable cost, for these models to work.

2. Increased use of bio-based materials: products may result in there being less land for food production, which could result in less biodiversity.

3. Negative un-intended consequences: It is important to take a system view when thinking about circular business strategies, in order to avoid unintended negative consequences.

   • Airbnb led to some increases in housing prices as well as complaints against noisy tourists in areas.

     4.. Rebound effects: Having saved money, some businesses increase production which can nullify the co2 reduction or resource benefits.

   • 5. May not counter growth-orientated models: Core business models may be so damaging that the circular strategy is not enough to mitigate harm.

   • 6. Circular models do not address social issues: Businesses with this strategy generally focus on environmental and economic sustainability, but not sociocultural sustainability.

     • Need to consider other methods to address impact on society