Business Environment 2_Mission values objectives, stakeholder mapping, objectives of stakeholders

The lecture provides descriptions of missions, values, objectives and the influence of stakeholders. The lecture will help students create and recognize a vision statement, mission statement, values of enterprisescompanies in business environment

MISSION, VALUES &

OBJECTIVES AND INFLUENCE OF

STAKEHOLDERS

BUSINESS

ENVIRONMENT_Task 1a

MISSION AND VISION PAGE 26

Vision

Stateme

nt

Mission Stateme nt

Goals Objectiv

es

VISION STATEMENTS

 Short and inspiring statement of what your

organisation intends to become and to achieve at

some point in the future

 Strategic intentions of organization

 “animating the dream”

 Meant to inspire, not very helpful in the shorter term

 Sort of super-objective, it may never be attained

 What the organisation stands for

 May contain commitment to:

 Creating an outstanding value for customers and other stakeholders

 Developing a great new product or service

 Developing a great company

Examples of VISION

STATEMENTS

General Electric (GE)

“We bring good things to life.”

Ford

“To become the world’s leading consumer

company for automotive products and services.”

MISSION STATEMENTS

Mission describes the organisations basic function in society, in

terms of the product and services it produces for its clients.

Mission Statements

 A road map

 Behaviour and actions for the present and

immediate future

 Outline the specific role that the organisation plans

to fulfil within society over the long term

 Limit the scope of operations by implicitly excluding areas outside its stated mission

MISSION STATEMENTS

Characteristics:

1. Brevity – easy to understand and

remember

2. Flexibility – to accommodate change

3. Distinctiveness – to make the firm stand out

Examples of MISSION

STATEMENTS

Herr Haar (Hair and Beauty Salon)

Our mission is to provide skilled services, through talented cosmetologists, that give our customers the dignity and self respect needed to be successful in the world today We are also committed to offering a range of complementary

services for hair styling and bodycare in the same location,

to give our customers the convenience of a single location for all their hair and bodycare needs.

Google

Google's mission is to organize the world's information and make it universally accessible and useful.

More Examples:

Course Book; page 27

Business Economics Modular Text Book; pages 146-147

WORKSHOP 1

Instructions: Write your answers on your WORKSHOP NOTEBOOK

Always keep your notebook neat and organized for easy

reference when doing your assignments.

1. Select one organisation from the list:

2. Identify the mission of your chosen

organisation Explain each statement

GOALS or AIMS

Goals are the intentions behind decisions or actions, the states of

mind that drive individuals or organisations to do what they do.

 From the vision and mission, GOALS are

 Separate goals may be developed for customers,

suppliers, employees and shareholders.

Examples of GOALS or AIMS

Goals or aims of a business might be:

 The goals or aims of the organisation will have an ideology based on beliefs, values and attitudes;

 This ideology is a means of control through

shared beliefs, and determines the culture of the organisation;

 Provide a set of principles that govern the overall conduct of the organisation’s operations, code of behaviour, the management of people, and its

dealings with other organisations

corporate objectives and individual values

 Every organization and every leader will have a different set of values that are appropriate to its business situation

WORKSHOP 2

Instructions: Write your answers on your WORKSHOP NOTEBOOK

Always keep your notebook neat and organized for easy

reference when doing your assignments.

1. Use the same organisation that you have selected

in Workshop 1

2. Identify the values of your chosen organisation

Explain each statement

 Set out more specifically the goals of the

organisation, the aims to be achieved and the desired end results

 Combination of primary and secondary objectives

 Corporate Objectives

Profitability, Market Share, Growth, Cash Flow, ROCE, Sales, Customer Satisfaction, Customer Satisfaction, Quality, Industrial Relations, Added Value, Earnings per Share, Risk, Brand Loyalty

Examples of OBJECTIVES

Primary Objective:

To have growth in profits by 25% over the next five years.

Secondary Objectives:

To increase sales growth by 10% next year.

To have a continual technological innovation.

To improve customer service.

To improve product quality.

To develop efficient resource management.

To reduce the company’s reliance on debt capital.

More examples: Course Book; pages29-33 Business Economics Modular Text Book; pages146-147

More Examples

Claremont Funding is an outstanding mortgage brokerage firm serving the

lending needs of real estate professionals, builders and individual home

buyers We have access to a full range of mortgage sources and are dedicated

to finding the right loan with the best rates, terms and costs to meet our

clients' unique needs This firm is capitalized by two principal investors, Joan Billings and Maureen Shoe Both are licensed brokers with a combined

experience of over 30 years in the industry.

Mission: Claremont Funding will focus on providing personal and

specialized services to meet each client's specific needs.

Goal: Claremont Funding aims to offer comprehensive mortgage

broker services

Objectives: The primary objectives of our firm are:

 Become profitable serving the real estate investment opportunities becoming available in the rapidly growing old town section of the city.

 Develop a solid, corporate identity in our specified target market area.

 Become one of the top brokerage firms in the area by our third year of operation, or before.

 Realize a positive return on investment within the first 12 months.

WORKSHOP 3

Instructions: Write your answers on your WORKSHOP NOTEBOOK

Always keep your notebook neat and organized for easy

reference when doing your assignments.

1. Use the same organisation that you have selected in

ASSESSING THE INFLUENCE OF STAKEHOLDERS

USING:

STAKEHOLDER MAPPING

BUSINESS ENVIRONMENT_Task 1A

continuation

STAKEHOLDER MAPPING page

42

Minimal Effort Keep Informed

Keep Satisfied Key Players

LOW interest/aspirations

HIGH interest/aspirations

Categories of Stakeholders in terms of their

INTEREST against their LEVEL OF INFLUENCE

 MINIMAL EFFORT

 low interest, low influence

segment

 do not have great ability to

influence strategy & do not

have much interest in the

 must be treated with care

 capable of being key players

 e.g large institutional

in influencing more powerful stakeholders

 e.g charities, community representatives

HOW TO ASSESS THE INFLUENCE OF STAKEHOLDERS using Stakeholder Mapping

STAKEHOLDERS MAPPING

• Key players - strategy must be acceptable to them, at least An example

would be a major customer.

• Stakeholders in ‘Keep satisfied’ segment must be treated with care

While often passive, they are capable of being key players Large

institutional shareholders might fall into this segment.

• Stakeholders in ‘Keep informed’ segment do not have great ability to

influence strategy, but their views can be important in influencing more powerful stakeholders, perhaps by lobbying Community representatives and charities might fall into this segment.

• Minimal effort is expended on this segment.

WORKSHOP 4

Instructions: Write your answers on your WORKSHOP NOTEBOOK

Always keep your notebook neat and organized for easy

reference when doing your assignments.

1. Use the same organisation that you have selected in

EXTENT TO WHICH ORGANIZATION ACHIEVES THE

OBJECTIVES OF THREE

STAKEHOLDERS

BUSINESS ENVIRONMENT_Task 1b

Three Broad Types of

Stakeholders

Stakeholders are the many different groups and

individuals whose interests are affected by the activities of

a firm

Three (3) Broad Types of Stakeholders

1. Internal - employees, management

2. Connected - shareholders, customers, suppliers,

financiers, lenders, competitors

3. External - community, movement, pressure

groups, special interest groups, national and world society

6 Skills and career development

7 A sense of doing something worthwhile

 Firm’s overall condition

 Keen to minimise the risk of interest not being paid, or

of its security being eroded

ACHIEVING STAKEHOLDERS’

OBJECTIVES

CONNECTED STAKEHOLDERS

3. Customers

 Want products and services

 Large customers have significant power over prices

and procedures

 Determine what is produced, what quality is needed,

what price is charged and what development is needed

 Failure to listen to customers = no sales, no market

Main Ways that Customers Affect Businesses is Through:

 Feedback

 Complaints

 Suggestions

 Choosing whether or not to buy

 Filing out questionnaires

ACHIEVING STAKEHOLDERS’ OBJECTIVES

CONNECTED STAKEHOLDERS

4. Suppliers

 Will expect to be paid

 Will be interested in future business

5 Competitors

ACHIEVING STAKEHOLDERS’

OBJECTIVES

EXTERNAL STAKEHOLDERS

1. Central government

 Passing laws to protect workers and customers

 Collecting taxes (income tax, corporation tax, VAT)

 Supporting businesses in socially or economically

ACHIEVING STAKEHOLDERS’ OBJECTIVES

EXTERNAL STAKEHOLDERS

3. Professional bodies

 Ensure that members who work for companies

comply with professional ethics and standards.

4. Pressure groups

 Interest in particular issues.

ACHIEVING STAKEHOLDERS’ OBJECTIVES

EXTERNAL STAKEHOLDERS

3. Professional bodies

 Ensure that members who work for companies

comply with professional ethics and standards.

4. Pressure groups

 Interest in particular issues.

WORKSHOP 5

Instructions: Write your answers on your WORKSHOP NOTEBOOK Always

keep your notebook neat and organized for easy reference when doing your assignments.

1.

the objectives of three stakeholders Identify whether

achieved/not achieved Present in tabular form Explanation

MUST be written below the table.

Example of Explanation:

One of the employees’ objectives is to receive a high salary The

company is able to achieve this objective because the amount of salary (3million VND) that they give to all employees is much higher than the minimum requirement

HOW TO ASSESS THE INFLUENCE OF

examples)