International Pearson Edexcel A level Business 3311 CORPORATE OBJECTIVES TEACHER.pptx

a) Development of corporate objectives from mission statement/corporate aims
b) Critical appraisal of mission statements

1. Edexcel International A Level Business 331 Business objectives and strategy 1 CORPORATE OBJECTIVES

2. You will need worksheet 331 1 for this lesson

3. From the specification a) Development of corporate objectives from mission statement/corporate aims b) Critical appraisal of mission statements

4. Starter This is a mission statement: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” Which business do you think this might be from?

5. Answer to starter

6. Definition: Mission Statement A mission statement is a brief description of a business’s overall aim and strategic vision. The mission statement provides the business with a sense of direction and an understanding of the company’s values and goals in order to achieve the company’s strategic vision.

7. Development of corporate objectives from mission statement/corporate aims

8. Hierarchy of business objectives

9. Mission statement - Nike A mission statement is a short way of a business expressing their main intent Nike’s mission statement is "To bring inspiration and innovation to every athlete* in the world .“ The legendary University of Oregon track and field coach, and Nike co-founder, Bill Bowerman said, "If you have a body, you are an athlete."

10. Mission statement - Amazon A mission statement is a document written by a business which should provide general aims for all the employees to work towards Amazon says their mission unites Amazonians across teams and geographies as they are all striving to delight their customers and make their lives easier one innovative product, service, idea at a time " 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."

11. Mission statement – Coca C ola The Coca Cola Company mission statement “To refresh the world in mind, body and spirit. To inspire moments of optimism and happiness through our brands and actions” Video link This mission statement shows that Coca-Cola has a customer-centric focus as it’s all about the customer experience Do you think this advert inspires optimism?

12. Mission statement - Google Google’s mission statement is “To organize the world’s information and make it universally accessible and useful” Google Inc. is a multinational corporation that provides Internet-related products and services, including internet search, cloud computing, software and advertising technologies Do you think this mission statement is right for Google? Explain your answer

13. Mission statement - Disney A mission statement sets out the purpose and primary objectives of a business in the present A mission statement should be memorable A mission statement should be inspiring A corporate vision looks towards the future and where the business would like to be "To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company.” Does this fulfil the criteria for a mission statement? Explain your answer

14. Corporate objectives Corporate objectives should flow from the mission statement and corporate vision Usually set by senior management for the whole company Aimed at satisfying the shareholders so may be related to profit or dividends: Increase operating profit 4% over the next 24 months Increase dividends by 2% over the next three years Objectives need to be SMART (see next slide)

15. Corporate objectives are SMART objectives Specific ; This means there must be a clear definition, often including a number Measurable ; This means the achievement can be checked Achievable ; This means the business can achieve the target R ealistic ; This means that the target should sensible so that business can achieve it T ime-related ; T his means setting a date for achievement or review Example: To achieve a 30% share of the total sales in the children’s clothing market within five years

16. Department objectives In most businesses they divide up the work into departments or functions e.g. sales, marketing, human resources, operations and finance Each department will set their own objectives which should flow down from the corporate objectives For example, the marketing department may aim to increase sales 3% each quarter, this may be set as a target to help meet the corporate objective of increased market share What links department objectives and mission statements? Suggested answers in the slide notes

17. Critical appraisal of mission statements/corporate aims

18. What is the purpose of a mission statement? A mission statement is short, and to the point, but what is the purpose of a mission statement? A) to customers B) to businesses C) to stakeholders Suggested answers in slide notes

19. Who is the intended audience for a mission statement? EA games mentions the players in their mission statement: This mission statement also mentions the company culture designed to motivate employees and give them a sense of the company values and direction

20. Uses of mission statements A mission statement has many uses to a business here are three main ways: Strategic guidance; a clear sense of direction, a guiding principle to make sure all decisions meet this core value Employee motivation; clear understanding of the purpose and value of the company they are working for Branding; communicates the USP of the business to its customers and the market Tesla’s mission statement is “ Accelerating the world’s transition to sustainable energy . ” Video Link What is a USP ?

21. Limitations of mission statements Mission statements are far from perfect and here are 3 of the main criticisms of them: Vague; too broad and generic to be useful, does not differentiate Unrealistic; can be a significant gap between the statement and what actually happens, losing trust of stakeholders Rigid; can restrict the ability of a business to adapt in dynamic markets, to pivot or return to core business Do you think this mission statement is useful or limited?

22. Stakeholder perspectives on mission statements Owners Managers Employees Pressure groups Customers Competitors

23. Stakeholder perspectives on mission statements Owners Owners will want to maximise shareholder value of the business Managers Managers will look for core aims and objectives of the business to lead their staff / teams with Employees Employees will look for motivational statements that make them feel proud to work for that company Pressure groups Pressure groups will look for a clear environmental or ethical message in the mission statement Customers Customers will look to see if the core business principals are ethical Competitors Competitors will look to see if the business is visionary, competitive, innovative and organised

24. Plenary Quiz Identify the company from the mission statement " To organize the world's information and make it universally accessible and useful .“ "To bring the best user experience to its customers through its innovative hardware, software, and services .” " To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online .“ " To empower every person and every organization on the planet to achieve more.” " To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”

25. Plenary Quiz Answers 1 Google 2 Apple 3 Amazon 4 Microsoft 5 Nike

26. Case study for question 1

27. Sample question 1 Level 1 1-2 Level 2 3-5 Level 3 6-8

28. Answer sample question 1

29. Case study for question 2

30. Sample question 2 Level 1 1-2 Level 2 3-4 Level 3 5-7 Level 4 8-10 [10]

31. Answer sample question 1 slide 1 of 2

32. Answer sample question 1 slide 2 of 2

33. Case study for question 3

34. Sample question 3 Knowledge 1 Application 2 Analysis 1

35. Answer sample question 3

36. Glossary Corporate Objectives; Specific, measurable goals a company aims to achieve within a set timeframe to fulfil its overall strategy (SMART). Mission Statement; A concise declaration of a company's purpose, core values, and primary goals, guiding its direction and decisions . Corporate Aims; Broad, long-term goals reflecting the overall intentions and desired achievements of a company.