Cima Edition 18 Vision, Values, Culture, Mission, Aims, Objectives, Strategy and Tactics

8/19/2019 Cima Edition 18 Vision, Values, Culture, Mission, Aims, Objectives, Strategy and Tactics

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Vision, values, culture, mission,aims, objectives, strategy and tactics


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Vision and values

A vision is amotivating summary of what an organisation

hopes to achieve. It linksthe objectives with the

core values of the business

Values are a setof ethical or

operating principles

and beliefs thatguide decision

making


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Culture

Culture refers to the typical

way of working within anorganisation as demonstrated by the behaviours of the people

that work for it


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Types of business culture

Culture Characteristics

ower culture •ower is held by a small number of people•!wift decisions are made

"ole culture •#ighly structured and defined roles•$ay be bureaucratic and lack creativity

Task culture •%ased on team&working within groups set up for aparticular task •Can respond 'uickly to changing environment

erson culture •Trained workers are given the freedom to shareknowledge and e(pertise

)ntrepreneurialculture

•)ncourages risk taking and creativity •*ailure is often accepted and learned from


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$ission statement

A mission statement is a written expression ofthe aims of the business


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$ission statement

The mission statement draws together the purpose,

values, beliefs and non-financial goals of an

+rganisation. *or e(ample-ong term business success based on newly invented,

innovatively designed products /ames 0yson


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urpose of a mission statement

To communicate the business aims tostakeholders

To motivate employeesTo act as a " tool to create an image for the

organisation

0evelop customer loyalty


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Aims

Aims are the long term goals of an organisation

“to ensure customer satisfaction”

“to deliver shareholder value”


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+bjectives

+bjectives are medium term targets that act as

stepping stones to achieving the aims

1to achieve a return on e'uity of 2345

1to increase profits by 264 in 76285


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Aims and objectives

Aims and objectives often relate to

!urvival

rofit9rowth

roviding a service

$arket shareCustomer satisfaction

)thics and sustainability


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Changing objectives

+rganisations may change their objectives over time

because...

They may achieve their original objectivesThe business has grown

The competitive environment changes

The market changesTechnology changes


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Conflicting objectives

!ome objectives may conflict. *or e(ample

Profit and growth & e(pansion can increase costs,especially in the short term

Providing a service and growth & smaller firmsmay know their customers better than large firmsand therefore be able to provide a more personalisedservice


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urpose of aims and objectives

To provide direction for the organisation

To form a basis for allocating resources

To be motivational

To monitor performanceTo measure success


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!etting objectives

The objectives that organisations set will depend on

several factors

The overall aims Analysis of business performance e.g. !:+T

analysis

Ownership public sector objectives are morelikely to focus on providing a service whereas privatesector firms may focus on profit and growth


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!$A"T objectives

!$A"T objectives make it easier to assess if targets

have been met

Specific

Measurable

A chievable

elevant!ime&framed

For example...

To achieve a 5% reduction in

labour turnover in 2013

compared to 2012


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!trategy

A strategy is a long term plan by which the aims and

objectives are met.


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!trategy

Strategies are medium to long-term plans for

achieving business aims and ob"ectives

!o...

Aims;objectives identify where a business wants to

be!trategies show how it is going to get there


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!trategy at different levels

!trategies can be developed for different levels within

an organisation

Corporate for the overall business%ivisional for each area of the business

#unctional departmental strategies for success

&ndividual often identified and developedthrough an appraisal system


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0evising business strategy

:hen devising business strategy firms consider

The current situation !:+T analysis is usefulfor this

The competitive environment orter identified*ive *orces for analysing this Threat of new entrants

%argaining power of buyers

Threat of substitutes %argaining power of suppliers

"ivalry among e(isting firms


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Types of strategy

*irms can adopt different types of strategy. According

to $ichael orter, there are three generic competitive

strategies+verall cost leadership & to maintain high returns

%ifferentiation to produce something uni'ue in

the market#ocus on one particular market segment or

product


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Tactics

Tactics are the shorter term activities that a firm puts

in place to implement its strategy.

Documents

Cima Edition 18 Vision, Values, Culture, Mission, Aims, Objectives, Strategy and Tactics