1.3 Organizational objectives - IB Business Management
Terms in this set (21)
An outline of an organization's aspirations in the distant future. (Where it wants to be). Focused on very long term.
A simple declaration of the underlying purpse of an organization's existence and its core values. Medium or long term.
Long-term goals. What an organization wants. E.g. to become the market leader of a product
Actions that facilitate an organization to meet its goals, e.g. expanding into new markets
Short-term actions used to acheive an organization's tactical objectives, e.g. survival
Specific- Clear and well defined
Measurable- objective has to be measured to see wether it is achieved or not
Relevant- the objective has to be of use
Time-specific- sufficient time frame
- Corporate culture
- Type and size of organization
- Private vs public sector
- Age of the business
- Finance changes
- Risk profile
- Crisis management
- State of the economy
- Government constraints
- Presence and power of pressure groups
- New technologies
Goals based on established codes of behavior, that when met, allow the business to provide some social or environmental benefit.
Commercial reasons for ethical objectives
- Building up costumer loyalty
- Creating a positive image
- Developing a positive work environment
- Reducing risk of legal issues
- Satisfying costumer expectations on ethical behavior
- Increasing profits
Corporate social responsibility
A business has an obligation to operate in a way that will have a positive impact on their stakeholders.
The first stage in the planning process. Helps to brainstorm the perceived strengths, weaknesses, opportunities and threats.
Helps a business plan their growth strategies.
- Market penetration
- Market development
- Product development
When a business grown by increasing its market share, selling existing products in an existing market. Low risk i.e. increase market share of current products
Expands the market by selling existing products in new markets i.e. an established product is marketed to a new set of customers
Selling new products in new markets, the riskiest growth strategy.
Short-to-medium term. Specific targets an organization sets in order to acheive its aims. E.g. increased market share
Moral principles that guide decision-making and strategy
Medium-risk growth stratgey that involves selling new products in existing markets i.e. Apple launching the iPhone in the mobile phone industry