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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.