Starter: What is a mission
statement?
Mission Statements
The mission of an organisation is its essential
purpose, the mission statement is a means of
communicating to key stakeholders what the
company is doing and what it ought to be doing.
Why is it important to share a company’s mission statement with
employees?
Why is it important for managers to think back to the mission statement
when making strategic decisions?
Mission statement – Levi Strauss
People love our clothes and
trust our company. We will
market the most appealing
and widely worn casual
clothing in the world. We
will clothe the world.
Five characteristics of a good mission
statement

Contains a formulation of objectives that enables
progress towards them to be measured

Differentiates the business from its competitions

Defines the markets or business in which the firm
wants to operate

Is relevant to all major stakeholders - not just
shareholders and managers

Excites, inspires, motivates & guides
Would these be suitable or appropriate for the businesses today?
• Microsoft: ‘A computer on every desk and in every home’ 1988
• Coca Cola: ‘Our mission is to get more people to drink Coke than
water’.
Corporate aims and objectives
• Corporate aims: the long-term intentions of a business.
• (Usually in the form of the mission statement)
• Corporate objectives: targets that must be achieved in
order to meet the stated aims of the business.
- Yardstick or decision-making and performance.
- Helps co-ordinate business activities
Corporate aims and objectives
Mission Statement
The overall reason for the business’ existence
Corporate Aims
The long term targets and plans to fulfil the
mission statement
Corporate Objectives
The medium to long term quantifiable targets to
fulfil the mission statement
Corporate Strategy
The actions to be taken by the business to
achieve
Corporate aims
• Long term targets of a business
• Tend to be qualitative
• Provides a direction for the business
• Inform corporate objectives and strategies
• Performance can be measured against these aims
Look at the Coca Cola web site to see how it has taken the mission
statement and translated this into visions or aims.
http://www.coca-cola.co.uk/about-us/coca-cola-mission-visionstatement.html
How objectives can be used

Implement the mission

Provide a clear focus for decision making

Provide a target

Motivate employees

Facilitate control of actual performance

Provide a criteria for evaluating performance

Reduce uncertainty

Provide a sense of unity
Strategies
 "Strategy is the direction and scope of an organisation over the longterm: which achieves advantage for the organisation through its
configuration of resources within a challenging environment, to
meet the needs of markets and to fulfil stakeholder expectations".
 Planned by the board of directors’
 SWOT, Ansoff’s matrix and PESTLE will be used to assist
BUSS4.1 Mission, Aims and Objectives
Greggs plc - Strategies
1.
Expanded from 20 shops in Newcastle to alternative location
around the UK
2. Went into long-term expansion by introducing products such as
sausage roles – driven the groups performance against a declining
bakery market
3. Prioritises employees and customers over shareholders –
Excellent customer service and motivated staff
Influences on Objectives & Policies
Social
responsibility
Owners
expectations
Business
ethics
Manager’s
goals
Objectives
and policies
Economic
Factors
Consumer
pressures
Employee
expectations
Pressure
groups
Trade
Unions
Legislation
Stakeholder
• Definition:
• An individual or group with a direct interest in the activities and
performance of an organisation.
Who are the stakeholders?
Managers
Employees
Shareholders
Customers
Media
The government
Local community
Suppliers
What are their objectives?
Shareholders objectives
• High profits
• High dividends
• Growth
• A say in the business
• A positive corporate image
Employee objectives
• High pay
• Job security
• Good working conditions
• Fair treatment
• Fringe benefits
• Health and safety
• Promotion prospects
• Training opportunities
Customer objectives
• Low prices
• Value for money
• High quality products
• Regular supply
• Choice
• Clear and accurate information
Suppliers objectives
• A long term relationship with the firm
• Large size and high value of contracts
• Frequent and regular order
• Prompt payment
• Fair prices
• Growth of the firm leading to more orders
Local community objectives
• Employment prospects
• Safeguarding the environment
• Acceptance of social responsibility
• Ethical behaviour
Government objectives
• Compliance with laws and regulations
• Efficient use of resources
• Employment
• Contribution to the national economy
• Payment of taxes
Discussion question!
• Meeting stakeholders needs – to what extent is this a win-lose or winwin situation??
• Discuss in pairs and be ready to feedback to the class.
How can stakeholders influence the
decisions/ strategies made?
Public Limited Companies, whose shares are freely traded on stock exchanges
and are vulnerable to takeover, place satisfying shareholders and the making of
profit very high on their list of priorities. Richard Branson and the Virgin Group
recognise all stakeholders and emphasise responsibility over profitability. With
their activities being under increasing scrutiny to what extent do all businesses
need to take the perspectives of all stakeholders into account when establishing
corporate aims and objectives? Justify your answer with reference to the Virgin
Group and/or other organisations that you know. (40 marks)
HW: Research 3 organisations and how they have made decisions
based on the influence of their stakeholders and what impact that
has had on them.