BE 2+Mission Values Objectives,+Stakeholder+Mapping,+Objectives+of+Stakeholders

MISSION, VALUES & OBJECTIVES

AND INFLUENCE OF STAKEHOLDERS

BUSINESS ENVIRONMENT_Task 1a

MISSION AND VISION PAGE 26

VisionStatement

MissionStatement

Goals Objectives

VISION STATEMENTS

Short and inspiring statement of what your organisation intends to become and to achieve at some point in the future

Strategic intentions of organization “animating the dream” Meant to inspire, not very helpful in the shorter

term Sort of super-objective, it may never be attained What the organisation stands for May contain commitment to:

Creating an outstanding value for customers and other stakeholders Developing a great new product or service Developing a great company

Examples of VISION STATEMENTSMercedes Benz

“To be the best car company in terms of delivering quality products and services.”

Weight Watchers

“To build and exploit unique associations of dietary weight control and nutrition to gain a presence throughout the supermarket.”

Virgin Records

“To be the number 1 entertainment and service provider.”

Examples of VISION STATEMENTSGeneral Electric (GE)

“We bring good things to life.”

Ford

“To become the world’s leading consumer company for automotive products and services.”

Microsoft

“To enable people and businesses throughout the world to realise their full potential.”

Google

“The world’s perfect search engine.”

MISSION STATEMENTS

Mission describes the organisations basic function in society, in terms of the product and services it produces for its clients.

Mission Statements A road map Behaviour and actions for the present and

immediate future Outline the specific role that the organisation

plans to fulfil within society over the long term Limit the scope of operations by implicitly

excluding areas outside its stated mission

MISSION STATEMENTS

Characteristics:1. Brevity – easy to understand and

remember2. Flexibility – to accommodate change3. Distinctiveness – to make the firm stand

out

Examples of MISSION STATEMENTSHerr Haar (Hair and Beauty Salon)

Our mission is to provide skilled services, through talented cosmetologists, that give our customers the dignity and self respect needed to be successful in the world today. We are also committed to offering a range of complementary services for hair styling and bodycare in the same location, to give our customers the convenience of a single location for all their hair and bodycare needs.

GoogleGoogle's mission is to organize the world's information and make it universally accessible and useful.

More Examples:

Course Book; page 27

Business Economics Modular Text Book; pages 146-147

WORKSHOP 1

Instructions: Write your answers on your WORKSHOP NOTEBOOK. Always keep your notebook neat and organized for easy reference when doing your assignments.

1. Select one organisation from the list:

2. Identify the mission of your chosen organisation. Explain each statement.

GOALS or AIMS

Goals are the intentions behind decisions or actions, the states of mind that drive individuals or organisations to do what they do.

From the vision and mission, GOALS are derived.

Apply to shorter time frames than the more general mission statement but still non-specific and not quantified

More understandable statements for the different groups of stakeholders

Separate goals may be developed for customers, suppliers, employees and shareholders.

Examples of GOALS or AIMS

Goals or aims of a business might be: To survive To maximise profit To maximise revenue To be environmentally friendly To boost share price To cut costs AND OTHERS...

More examples: Business Economics Modular Text Book; pages 146-147

VALUES

The goals or aims of the organisation will have an ideology based on beliefs, values and attitudes;

This ideology is a means of control through shared beliefs, and determines the culture of the organisation;

Provide a set of principles that govern the overall conduct of the organisation’s operations, code of behaviour, the management of people, and its dealings with other organisations.

VALUES

Shared values are what engender trust and link an organization together.

Shared values are also the identity by which an organization is known throughout its business areas. These values must be stated as both corporate objectives and individual values.

Every organization and every leader will have a different set of values that are appropriate to its business situation.

Example of VALUES

Apple Computer

"The only thing that works is management by values. Find people who are competent and really bright, but more importantly, people who care exactly about the same things you care about.“

WORKSHOP 2


1. Use the same organisation that you have selected in Workshop 1.

2. Identify the values of your chosen organisation. Explain each statement.

OBJECTIVES

Set out more specifically the goals of the organisation, the aims to be achieved and the desired end results.

Combination of primary and secondary objectives

Corporate ObjectivesProfitability, Market Share, Growth, Cash Flow, ROCE, Sales, Customer Satisfaction, Customer Satisfaction, Quality, Industrial Relations, Added Value, Earnings per Share, Risk, Brand Loyalty

OBJECTIVES

Should follow the SMART technique:

Specific

Measurable

Attainable/Achievable

Results-Oriented/Realistic

Time-bounded

Examples of OBJECTIVES

Primary Objective:

To have growth in profits by 25% over the next five years.

Secondary Objectives:

To increase sales growth by 10% next year.

To have a continual technological innovation.

To improve customer service.

To improve product quality.

To develop efficient resource management.

To reduce the company’s reliance on debt capital.

More examples: Course Book; pages29-33. Business Economics Modular Text Book; pages146-147

More ExamplesClaremont Funding is an outstanding mortgage brokerage firm serving the lending needs of real estate professionals, builders and individual home buyers. We have access to a full range of mortgage sources and are dedicated to finding the right loan with the best rates, terms and costs to meet our clients' unique needs. This firm is capitalized by two principal investors, Joan Billings and Maureen Shoe. Both are licensed brokers with a combined experience of over 30 years in the industry.

Mission: Claremont Funding will focus on providing personal and specialized services to meet each client's specific needs.

Goal: Claremont Funding aims to offer comprehensive mortgage broker services.

Objectives: The primary objectives of our firm are: Become profitable serving the real estate investment opportunities

becoming available in the rapidly growing old town section of the city. Develop a solid, corporate identity in our specified target market

area. Become one of the top brokerage firms in the area by our third year

of operation, or before. Realize a positive return on investment within the first 12 months.

WORKSHOP 3



2. Identify the objectives of your chosen organisation.

3. Explain whether each objective follow the SMART technique.

ASSESSING THE INFLUENCE OF STAKEHOLDERS USING:

STAKEHOLDER MAPPING

BUSINESS ENVIRONMENT_Task 1A continuation

STAKEHOLDER MAPPING page 42

Minimal Effort Keep Informed

Keep Satisfied Key Players

LOWinterest/aspirations

HIGHinterest/aspirations

LOWpower/influence

HIGHpower/influence

Stakeholder mapping is used to assess the influence of stakeholders.

Categories of Stakeholders in terms of their INTEREST against their LEVEL OF INFLUENCE

MINIMAL EFFORT low interest, low influence

segment do not have great ability to

influence strategy & do not have much interest in the organisation

e.g. indirect competitors

KEEP SATISFIED low interest, high influence

segment must be treated with care capable of being key players e.g. large institutional

shareholders

KEEP INFORMED high interest, low influence

segment do not have great ability to

influence strategy but their views can be very important in influencing more powerful stakeholders

e.g. charities, community representatives

KEY PLAYERS high interest, high influence

segment strategy must be acceptable

to them e.g. major customer

HOW TO ASSESS THE INFLUENCE OF STAKEHOLDERS using Stakeholder Mapping

STAKEHOLDERS MAPPING

• Key players - strategy must be acceptable to them, at least. An example would be a major customer.

• Stakeholders in ‘Keep satisfied’ segment must be treated with care. While often passive, they are capable of being key players. Large institutional shareholders might fall into this segment.

• Stakeholders in ‘Keep informed’ segment do not have great ability to influence strategy, but their views can be important in influencing more powerful stakeholders, perhaps by lobbying. Community representatives and charities might fall into this segment.

• Minimal effort is expended on this segment.

WORKSHOP 4



2. Assess the influence of ALL stakeholders using Stakeholder Mapping/

3. Provide proof and evidences.

Three Broad Types of Stakeholders

Stakeholders are the many different groups and individuals whose interests are affected by the activities of a firm

Three (3) Broad Types of Stakeholders

1. Internal - employees, management

2. Connected - shareholders, customers, suppliers, financiers, lenders, competitors

3. External - community, movement, pressure groups, special interest groups, national and world society

EXTENT TO WHICH ORGANIZATION ACHIEVES THE

OBJECTIVES OF THREE STAKEHOLDERS

BUSINESS ENVIRONMENT_Task 1b

ACHIEVING STAKEHOLDERS’ OBJECTIVES

INTERNAL STAKEHOLDERS

Managers and individuals have individual interests and goals:

1. Security of income

2. Increases in income

3. A safe and comfortable working environment

4. A sense of community

5. Interesting work

6. Skills and career development

7. A sense of doing something worthwhile


CONNECTED STAKEHOLDERS

1. Shareholders/Owners Return on investment Ethical performance Growth of investment funds

2. Bankers Firm’s overall condition Keen to minimise the risk of interest not being paid, or

of its security being eroded

ACHIEVING STAKEHOLDERS’ OBJECTIVESCONNECTED STAKEHOLDERS

3. Customers Want products and services Large customers have significant power over prices

and procedures Determine what is produced, what quality is needed,

what price is charged and what development is needed Failure to listen to customers = no sales, no market

Main Ways that Customers Affect Businesses is Through: Feedback Complaints Suggestions Choosing whether or not to buy Filing out questionnaires


CONNECTED STAKEHOLDERS

4. Suppliers Will expect to be paid Will be interested in future business

5. Competitors


EXTERNAL STAKEHOLDERS

1. Central government Passing laws to protect workers and customers Collecting taxes (income tax, corporation tax, VAT) Supporting businesses in socially or economically

deprived areas Subsidising activities Aiding exporters

2. Local authorities Local employment Increasing road traffic



3. Professional bodies Ensure that members who work for companies

comply with professional ethics and standards.

4. Pressure groups Interest in particular issues.



3. Professional bodies Ensure that members who work for companies

comply with professional ethics and standards.

4. Pressure groups Interest in particular issues.

WORKSHOP 5



2. Evaluate the extent to which selected organization achieves the objectives of three stakeholders. Identify whether achieved/not achieved. Present in tabular form. Explanation MUST be written below the table.

3. Provide facts and figures.

Example of Explanation:

One of the employees’ objectives is to receive a high salary. The company is able to achieve this objective because the amount of salary (3million VND) that they give to all employees is much higher than the minimum requirement.

HOW TO ASSESS THE INFLUENCE OF STAKEHOLDERS? (some examples)

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BE 2+Mission Values Objectives,+Stakeholder+Mapping,+Objectives+of+Stakeholders