IB Business and
Management
1.3 – Organisational Objectives
Learning Outcomes
• Explain the importance of objectives in managing
an organisation
• Explain the purpose of mission and vision
statements
• Analyse the role of vision and mission statements in
an organisation
• Distinguish between Objectives, strategies and
tactics and discuss how these interrelate
• Evaluate the need for firms to change objectives in
response to changes in the internal and external
environment (HL)
In a nut shell…..
Task…..
• In pairs
• Write your answer to the IB exam question:
• Define the term ‘objective’ [2]
Remember what you need to do in order to gain the full
2 marks in a definition question
What is an objective?
• An objective is a target or goal. This is a desired
result that a person or group of people envisage,
plan and commit to.
Objectives Should be SMART
What does SMART stand for?
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Specific
Measurable
Agreed
Realistic
Timed
Personal Objectives
• Objectives are not restricted to businesses, many
individuals set objectives too…..
Examples of types of objectives:
• Weight loss
• Grades
• Saving money
Can you think of any others?
Are these objectives SMART?
• To lose 15kg within 2 weeks
• To save $600 dollars within the
next year
• To achieve at least 4 grade 7’s in
the IB in June
• To get fitter by Christmas
Task – 2 minutes
• Write 2 SMART objectives for yourself
BUSINESS OBJECTIVES
Hierarchy of Objectives…..
Corporate Aims
Strategic Objectives
Tactical/Operational
Objectives
Individual Objectives
Why do the arrows flow in this direction?
Task
• Open the document ‘The Differences between
Strategic and Tactical Objectives’
• Drag and drop the descriptors into the right side of
the table.
Types of Strategic Objectives
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Profits
Liquidity
Revenues
Market Share
Repeat customers
Brand Recognition
Customer Satisfaction
Growth
Shareholder value
Return on Investment
Environmental
Ethical
Task • As you know, tactical objectives are set at
departmental level.
• Write a list of the types of tactical objectives that
might be set by each of the following departments:
– Production/Operations
– Finance
– Human Resources
– Marketing
ACHIEVING OBJECTIVES
Achieving Objectives
Corporate Aims
Strategic Objectives
Tactical/Operational
Objectives
Individual Objectives
Achieved
using
Strategies
Achieved
using
Tactics
Task
• Open the document ‘Objective, strategy or tactic’
• Decide whether they are:
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Strategic Objectives
Tactical Objective
Strategy
Tactic
Importance of Objectives….
• Why are Objectives so important?
Questions…..
1. What are the differences between aims and objectives?
2. What does SMART stand for?
3. What are the differences between Strategic and
Tactical Objectives
4. What are the differences between a Strategy and a
Tactic?
5. For BSM…….. Give a likely:
a. A Strategic Objective
b. A Tactical Objective
c. A Strategy
d. A Tactic
Let’s rewind….. What do businesses need to do before they
can write meaningful objectives……
VISIONS AND MISSIONS
WHAT’S THE DIFFERENCE??
Vision Vs Mission
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Vision
Future based
Answers the question
‘Where is the business
going?’
Focus on the long-run
Is inspirational and
should shape strategic
decision making
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Mission
Based in the present
A declaration of the
core values of the
company
Answers the question
‘Why does the business
exist?’
Communicated to
internal and external
stakeholders
Mission Statements (according
to Vern McGinnis) should …..
1) define what the organization is and what it aspires to be
2) be limited enough to exclude some ventures and broad
enough to allow for creative growth
3) distinguish a given organisation from all others
4) serve as a framework for evaluating both current and
prospective activities,
5) be stated in terms sufficiently clear to be widely
understood throughout the organisation.
WHOSE VISION????
Let’s get the whiteboards out!!!
The Rules
• 5 points for a correct answer
• 1 point for a feasible guess!!
A house point for the winner
Whose Vision?
“Our vision is to be earth's most
customer centric company; to build
a place where people can come to
find and discover anything they
might want to buy online.”
Whose Vision?
‘Our goal is to build great mobile
products that enable billions of people
worldwide to enjoy more of what life has
to offer. Our challenge is to achieve this
in an increasingly dynamic and
competitive environment.’
Whose Vision?
‘To be the worldwide leader in
sharing delicious tastes and
creating joyful memories.’
Whose mission?
• Our mission is to be the world's
premier consumer products company
focused on convenient foods and
beverages
Whose mission?
• To organize the world‘s information
and make it universally accessible and
useful.
Whose mission?
Whose mission?
• to enable people and businesses
throughout the world to realize
their full potential.
Whose mission?
• Our mission: to inspire and nurture the
human spirit – one person, one cup
and one neighbourhood at a time.
Whose mission?
• To bring inspiration and innovation to
every athlete* in the world.
*"If you have a body, you are an
athlete."
Whose mission?
• To give people the power to share and
make the world more open and
connected.
Task – Lets be creative
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In pairs
Pick a company of your choice
Can you write a mission statement for them?
Try to be inspirational
Good Mission?
McDonald's
brand mission
is to be our
customers'
favorite place
and way to
eat and drink.
Saving people
money so they
can live better.
The Mission of
Levi Strauss & Co.
is to sustain
responsible
commercial
success as a
global marketing
company of
branded apparel.
Task….
What are the key benefits to a business
of having a vision and mission
statement?
What might the criticisms of
vision/mission statements be?
Video
• Watch the video “The benefits of vision, mission and
objectives’
Homework Task
• Research and find mission statements
for 3 different businesses.
• Try to find concise and unusual
mission statements
• If they contain the company name you
can just insert ‘Company X’ instead
• Add them to the Google doc