Summary IB Business Management 1.3 - Organisational Objectives
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Course
IB Business Management (BM1.3)
Institution
High School
Book
Business Management for the IB Diploma Coursebook
IB Business Management summary of Chapter 1.3 Organisational Objectives made from Cambridge IB Business Management for the IB Diploma (2nd edition). Easy to understand with dynamic charts.
Case BAM Business Management for the IB Diploma Coursebook
IB business management, 2.4 Motivation
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Business Management 1.3 – ORGANISATIONAL OBJECTIVES
MISSION STATEMENT: The business´s core aims, motivational phrase with an overall purpose.
“Who we are and what we do”. Should answer
What do we do?
For whom do we do it?
What is the benefit?
VISION STATEMENT: What an organisation wants to accomplish in the future, how it will look
in the future, how do they want the organization to become.
Advantages Disadvantages
Inform outside people about the aim and Vague and general (do not explain
vision anything about the business)
Motivate employees (mission) Intention to make the stakeholders think
Guide employee behaviour at work (give in a positive way
a sense of purpose, direction and focus) Cannot disagree or analyse them
Explain what the business is about Confuse, different businesses with
similar missions
Corporate aims: long-term goals which a business hopes to achieve. Shareholder goals,
customer-based goals or market based goals. E.g: “to increase shareholder returns each year
through business expansion”; “meet customers’ needs”; “become the world leader”
Divisional objectives: shot/medium-term goals which must be achieved for an organisation to
attain its corporate aims.
Operational objectives – SMART
S PECIFIC: apply directly to that business
M EASURABLE: quantitative value makes if more effective: %$...
A CRIEVABLE: if they can´t do it, demotivation will occur
R EALISTIC / RELEVANT: enough resources and relevant for the people carrying it out
T IME-SPECIFIC: set a duration
INTERLINKING AIMS, OBJECTIVES AND SRATEGIES (Management by objectives; MBO) -
Hierarchy of objectives
1. Corporate aims: divided into operational objectives
2. Operational/Divisional objectives are used to coordinate all the divisions, to give
consistency to corporate objectives, need to have resources to be accomplished
3. Departmental objectives
4. Individual targets.
RELATIONSHIP
Aims and objectives: long-term plans
Aims and strategies change over the time. If the objective changes, then the plan will
change too (strategy). 1° objective; 2°strategy; 3° tactic.
Strategic decisions Tactical decisions
Long-term Short/Medium-term
Difficult to reverse once made Reversible (with costs)
Taken by directors or senior managers Taken by less senior managers or
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