Aims objectives and vision Vision and values Values
Aims, objectives and vision
Vision and values Values are a set of ethical or operating principles and beliefs that guide decision making A vision is a motivating summary of what an organisation hopes to achieve. It links the objectives with the core values of the business
Aims are the long term goals of an organisation: “to ensure customer satisfaction” “to deliver shareholder value”
Objectives are medium term targets that act as stepping stones to achieving the aims: “to achieve a return on equity of 16%” “to increase profits by 10% in 2012”
Aims and objectives often relate to: Survival Profit Growth Providing a service Market share Customer satisfaction Ethics and sustainability
Changing objectives Organisations may change their objectives over time because. . . They may achieve their original objectives The business has grown The competitive environment changes The market changes Technology changes
Conflicting objectives Some objectives may conflict. For example: Profit and growth - expansion can increase costs, especially in the short term Providing a service and growth - smaller organisations may know their customers better than large organisations and therefore be able to provide a more personalised service
Purpose of aims and objectives To provide direction for the organisation To form a basis for allocating resources To be motivational To monitor performance To measure success
Setting objectives The objectives that organisations set will depend on several factors: The overall aims Analysis of business performance e. g. SWOT analysis Ownership – public sector objectives are more likely to focus on providing a service whereas private sector firms may focus on profit and growth
SMART objectives make it easier to assess if targets have been met Specific Measurable Achievable Relevant Time-framed For example. . . To achieve a 5% reduction in labour turnover in 2011 compared to 2010
Strategy A strategy is a long term plan by which the aims and objectives are met.
Tactics are the shorter term activities that a firm puts in place to implement its strategy.
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