Professional Documents
Culture Documents
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1.
Mission
What is the organisation all about? Why does it exist? Who does it exist for? What is it trying to achieve? An organisations mission answers these questions. A mission helps to provide: Common purpose so everyone is clear what the purpose and values of the company are to help guide the companys culture Focus for the strategy strategic decisions can be based upon and reviewed against their consistency with the mission to ensure the organisation does not get off track or lose focus on its true values and purpose. Direction for objectives to ensure alignment of activities towards achieving objectives which are consistent with the companys purpose.
2.
Mission Statements
A mission statement is a written statement of the companys purpose, strategy, values and policies. Campbell set out the following key elements of good mission statements: Purpose Why does the organisation exist? For whom does it exist? What does the organisation hope to achieve long term?
Strategy How will the organisation compete? The range of businesses it is operating within.
Values What the organisation stands for (quality, value for money, innovation etc.)
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Policies Policies people are expected to follow which will ensure people act according to the defined values, strategy and purpose.
Qualities of good mission statements include: Clear/unambiguous Concise Covers the whole organisation Open ended (not quantifiable)
Apple Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. Dell To be the most successful computer company in the world at delivering the best customer experience in markets we serve. Facebook To give people the power to share and make the world more open and connected. Google To organise the worlds information and make it universally accessible and useful. Microsoft To enable people and businesses throughout the world to realize their full potential.
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YouTube To provide fast and easy video access and the ability to share videos frequently
You will notice that many real life mission statements are often short and focused, and lack some of Campbells elements of good mission statements. While theoretically incomplete this adds focus and improves the mission as a communication tool. Many of these organisations go on to produce other statements which when taken in combination with the mission statement complete Campbells elements. For example Microsoft has the following values statement: As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual selfimprovement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honouring our commitments, providing results, and striving for the highest quality.
3.
Objectives
Hierarchy of objectives
Objectives are set at different levels within the organisation to motivate and focus performance in each major part of the business. This goes right down to the individuals who are set objectives as part of their appraisal.
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Corporate
Vertical consistency
Business Unit
Vertical consistency of objectives Lower level objectives should be consistent with higher level objectives (e.g. individuals should be set objectives which. when achieved, will contribute to the achievement of their functions objectives.). This ensures each part of the organisation is acting in a way which is appropriate to the needs of the next level up.
Horizontal consistency of objectives The objectives of different departments, individuals, or businesses are consistent with each other (e.g. the production department objectives and sales department objectives are co-ordinated to ensure the right products and product quantities are produced to meet sales planned). This facilitates co-ordination within the organisation.
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Time based consistency Objectives should be consistent and achievable over time, so for example the 6 month objectives should be a natural progression towards those for the full year.
4.
Effective Objectives
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trying to achieve, and so they lack focus in their actions and are demotivated. 3. To reduce our current level of defects from 69 per 1000 to 0 per 1000 by the end of the month. Probably not achievable, but SMART in other respects. Demotivating as too difficult. The manager does not strive to achieve it. 4. To increase sales of products by 10% over the course of the next month. Not relevant enough to what they do, but SMART in other respects. They cant control the target directly so it does not motivate them to improve what they do. 5. To reduce the number of defective products from 2 per 1000 to 1 per 1000 by the end of the year. A SMART objective
5.
Stakeholders
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Stakeholder
- Directors - Employees - Shareholders - Customers - Suppliers - Financiers - Government - Pressure groups - Local community - Wider community
External
(Other)
Stakeholder power
The degree to which stakeholder needs are considered as part of the objective setting process depends on the level of power they have to impact the organisation and its results. The needs of powerful groups will tend to be prioritised For example large customers have significant power and products, prices, location of production facilities and so on may be impacted by their needs. Small customers have far less power and less consideration will be paid to their individual needs.
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Low
Minimal Effort
Power
Keep Informed
Keep Satisfied
High Low
Key Players
High
Level of Interest
Mendelow's matrix helps to identify the relationships that should be built with different stakeholders. A stakeholder's position in the matrix depends on two factors: Power- The power to influence the organisation, and affect its decisionmaking. Interest - The interest which the stakeholder has in the organisation. The greater the interest in the organisation the greater the level of communication that will be required with them. Many employees have little power, but good communication of plans is important to retain their loyalty and motivation.
Each stakeholder is placed in one box depending on each factor and then treated differently depending on where they are: Minimal effort e.g. Temporary employee. Give them basic information to meet their needs, but pay little attention to them in decision making and strategy. Keep informed e.g. Full time employee. Regularly communicate with them, particularly things they are interested in. This helps retain good relationships and avoids them seeking to increase power (e.g. through staff grouping together in a union).
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Keep satisfied e.g. Government. They have high power so to avoid them exercising the power they should be kept satisfied e.g. by paying them on time or meeting whatever needs they have. As they have little interest only information is given to them as is necessary (e.g. profit information to government to help assess tax payable). Key players (Keep Close) e.g. Major shareholder Regular communication is maintained and their goals and objectives included as part of the strategy setting process and business approach.
6.
Corporate Social Responsibility is, as the name suggests, a companies responsibility to the society in which it operates. This means considering all stakeholders as part of the decision making process not just the key players. CSR policies cover issues such as environmental policy and sustainability, health and safety, treatment of staff, charitable work and contribution and supporting local communities.
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high quality staff, build trust with investors, and gain the loyalty of suppliers.
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A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting including: Global Reporting Initiative's Sustainability Reporting Guidelines The ISO 14000 environmental management standard
In some nations, legal requirements for social accounting, auditing and reporting exist although there is little international agreement on what constitutes meaningful measurement of social and environmental performance. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary widely in format, style, and evaluation methodology (even within the same industry). Within organisations internal auditors may perform internal reviews (or audit) against the companies CSR policies as a way to review internal compliance.
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Strategic Mock Exams E3, F3 and P3 Based around the latest Preseen 2 full mocks are available for each strategic subject Full marking and detailed feedback Full mock marking Detailed and personalised feedback to focus on helping to pass the exams Personal coaching on your mock exam 1hr personal coaching session with your marker Personalised feedback and guidance Exam technique and technical review Strategic and Financial analysis of the Pre-seen Strategic analysis - all key business strategy models in E3 Financial analysis based around the F3 syllabus Risk analysis based around the P3 syllabus 30 page strategic report Full video analysis of how all key models apply to the unseen Video introduction to all the key models Personal Coaching Courses Personal coaching to get you through the exam Tuition Course Personalised tuition to give you the required syllabus knowledge tailored to your needs Revision Course - Practise past exam questions with personal feedback on your technical weaknesses and exam approach and technique Resit Course Identifying weaknesses from past attempts and providing personalised guidance and study guides to get you through the exam
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