Mission objectives & strategy

What is a mission statment?

aims or long term intentions of a business - a business’s mission sometimes is the same as corporate aims

What are the benefits of a mission statement ?

• differentiates business from its competitors

• relevant to all major stakeholders

• defines the focus of the business - aids decision making making process

Drawbacks with Mission statements?

• often too vague and general

• may often be seen as a PR stunt

• may not be wholeheartedly supported by senior staff

General influences on mission of a business (external & internal)

• technological changes

• threats/weaknesses of the business

• social responsibility

• industry of the business

• PESTLE factors (external)

• competitors actions

• ownership of the business

Internal influences on the mission of a business?

• ownership structure - PLC’s will have a different mission to a sole trader

  • private businesses will want to maximize profits

  • sole traders would have the objective to survive

  • public sector businesses (NHS) may have aims like providing good service to the public

• corporate culture - companies in the same industry may have different mission statements due to their differences in culture

External influences on the mission of a business?

• competitors actions

• ethical and environmental considerations

• mission statements can also be influenced by stakeholders

What does PESTLE mean?

• P - political - tariffs and trade agreements

• E - economic - interest rates

• S - social needs - demographic shifts

• T - technological - e-commerce

• L - legislation - health & safety laws

• E - environmental - pressures to use sustainable materials/environmentally friendly modes of transport

What are corporate objectives?

Realistic goals set by a company which influence internal strategic decisions.

What is a business strategy?

Long term actions taken to align a business with its mission statment.

What are tactical decisions?

Short term decisions used to support strategic decision making

• can involve making decisions based of to competitors actions e.g, price matching is a strategic decision

What is a strategic decision?

• Long term actions taken to align a business with its mission

• used to achieve corporate objectives

What is the link between Mission|Corporate|Strategy

• vision of a business is expressed in the mission statement

• corporate objectives are the smaller steps needed to achieve the vision mentioned in the mission statement

• strategy is the way a business will achieve its corporate objectives

What is short-termism?

The term used to describe when a business has a focus on achieving short-term results such as profit maximization in one year