Organisational Objectives: Vikas Tanwar - IBDP 1

Organisational
Objectives
Vikas Tanwar | IBDP 1

Vision Statement
A vision statement is an organization's
long-term aspirations, i.e. where it
ultimately wants to be.
Mission Statement
“To accelerate the

world’s transition to
A mission statement refers to the sustainable energy.”
declaration of an organization's overall
purpose. It forms the foundation for setting
the objectives of a business.
“To inspire humanity —

both in the air and on
the ground.”
Vision Statement vs Mission Statement
Vision Statement Mission Statement
The vision statement addresses the question The mission statement deals with the question
'what do we want to become?' 'what is our business?
They are focused on the very long term. They can focus on the medium or long
term.
They do not have to be actual targets that Everything you do as a company should work
must be achieved. toward your mission statement.
Aims
● Aims are the general and long-term goals of an organization.

● They are broadly expressed as vague and unquantifiable
statements.
● Aims are usually set by the senior directors of the organization.
● Aims serve to give a general purpose and direction for an
organization and are often expressed in a mission statement.
Objectives
● Objectives are the short-to-medium-term and

specific targets an organization sets in order to
achieve its aims.
● Objectives can be strategic, tactic or operational.
● They can be set by managers and their
subordinates
● They are often set as SMART goals (specific,
measureable, achievable, realistic and time
constrained), e.g. to achieve sales growth of
$250m by 2023, or increase market share by 3%
within five years.
● They can give a sense of direction to employees,
managers, departments and the whole
organization.
Why are Aims and Objectives important?
● To help with decision making .

● Employees may also be motivated by
these goals, encouraging them to work
harder to achieve a common goal.
● Aims and objectives provide an agreed
clear sense of purpose for all individuals
and departments of an organization.
● Aims and objectives also allow the
business to set targets which can then be
used to measure progress.
Strategies and Tactics
● Strategies are the plans of action to ● Tactics are short-term methods used
achieve the strategic objectives of an to achieve an organization's tactical
organization. objectives.
● They are usually long-term, overall ● They are short term and decisions is
corporate decisions made by senior made by employees lower down in
management. the hierarchy to motivate and inspire
workers.
The need for changing objectives
Internal Factors External Factors
● Corporate culture ● State of the economy

● Type and size of organization ● Government constraints
● Private versus public sector ● The presence and power of pressure
organizations groups
● Age of the business ● New technologies
● Finance
● Risk profile
● Crisis management
Ethical Objectives
● Ethical objectives are the objectives in which

organisations apply ethical values to their targets
and the actions.
● Examples of ethical objectives can be reducing
pollution, increased recycling, offering sufficient rest
breaks to the staff and fairer conditions of trade with
LEDCs (Less Economically developed countries).
Why to set ethical objectives ?
● Setting and pursuing ethical objectives can increase employee motivation and
productivity.
● Businesses might also find it easier to recruit and retain employees.
● It can reduce negative publicity from news media and pressure groups. The
growing use of social media makes it easier for the general public to demand
transparency and ethical business behaviour.
● Having a good corporate image with customers and a good corporate reputation
with the government enables the organization to gain competitive advantages.
Hence, CSR can be profitable (the ultimate aim of for-profit organizations).
Negative Impacts of Ethical objectives
● The compliance costs of acting in a socially

responsible way and the extra management time
required to execute ethical business practices places
the organization at a competitive disadvantage.
● This can mean lower profits being available to be
distributed to shareholders in the form of dividends.
This might therefore create some resentment with
investors.
● Not all stakeholders are keen on the business
adopting CSR, especially if this conflicts with other
objectives such as profit maximisation.
Corporate social Responsibility(CSR)
● Corporate social responsibility (CSR) refers to the

concern and obligation of a business in committing to
behaving ethically and responsibly towards its various
stakeholders.
● CSR involves voluntary actions a business can take,
over and above compliance with minimum legal
requirements in order to address competitive interests
and the interests of wider society.
● Examples include improving the quality of work life for
the employees, adopting green practices to protect the
natural environment, and using socially responsible
marketing strategies.
SWOT Analysis
A SWOT analysis is a management tool to assess where a business is at the

present time and how it is affected by the external business environment.
SWOT stands for:
● Strengths - Internal factors that reveal what the organization does well
compared to its rivals, e.g. high market share.
● Weaknesses - Internal factors that reveal what the organization does not
do so well compared to its rivals, e.g. poor customer service or low
employee motivation.
● Opportunities - External factors that may enable the organization to
develop and prosper, e.g. an economic boom.
● Threats - External factors that may hinder the organization's ability to
achieve its aims, e.g. higher interest rates or increasing competition in the
industry
Example of SWOT Analysis
Ansoff Matrix
Ansoff Matrix is an analytical tool which is used by businesses to identify and decide their
product and market growth strategies. Professor Igor Ansoff (1918-2002) showed the different
growth strategies a firm can take depending on whether it wants to sell new or existing
products in either new or existing markets :
● Market Penetration Existing New

● Market Development
● Product Development Existing
● Diversification
New
Growth Strategies of Ansoff Matrix
Work Cited
Websites
● https://www.fond.co/blog/best-mission-statements/
● https://www.bbc.co.uk/bitesize/guides/z4b2qp3/revision/2#:~:text=Businesses%20set
%20aims%20and%20objectives,likely%20to%20support%20new%20projects
.
Books
● IB Business Management (Paul Hoang 3rd Edition)

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Organisational

Vikas Tanwar | IBDP 1

“To accelerate the

“To inspire humanity —

Vision Statement Mission Statement

● Aims are the general and long-term goals of an organization.

● Objectives are the short-to-medium-term and

● To help with decision making .

Internal Factors External Factors

● Corporate culture ● State of the economy

● Ethical objectives are the objectives in which

● The compliance costs of acting in a socially

● Corporate social responsibility (CSR) refers to the

A SWOT analysis is a management tool to assess where a business is at the

● Market Penetration Existing New

● IB Business Management (Paul Hoang 3rd Edition)

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