BUSINESS AND MANAGEMENT

MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

Aims & Objectives

 “Whenever I am caught between two evils, I take the one I have never tried.”  Mae West (1893- 1980)

Mission Statements

 This is the attempt to condense the central purpose of a business’s existence into one statement.

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A statement of the business’s core aims, phrased in a way to motivate employees and to stimulate interest by outside groups.

 Communication of mission statements is almost as important as establishing them . There is little point in establishing the central vision for a business – and then not letting anyone else know about it.

Question: In what ways do businesses communicate their mission statements

What is a Mission Statement

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Its not specific and does not contain performance measures.

It’s a statement of fundamental purpose of the organization so as to inspire those who work for it.

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A vision of what the organization wants to be.

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Boundaries for the organization.

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Guidance for decision making.

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A statement of values to guide individual behaviour.

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A statement of the character of the organization and the customers it seeks to serve .

Features of a Well Produced Mission Statement?

 It outlines clearly the way ahead for the organization.

  Identifies the business the organization will be in in the future.

Provides a definition of success.

  Provides information and inspiration to their employees.

Provides a living statement that can be translated into goals and objectives at each level of the organisation.

Note: Objectives which are specific and quantifiable are designed to assist in the achievement of goals set out in the mission statement.

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Examples

Nike – to bring inspiration and innovation to every athlete in the world Microsoft – to enable people throughout the world to realize their full potential Greenpeace – exists because this fragile earth deserves a voice Pepsi – be better than Coke!

– Look up the mission statements of four other business and share them with the class.

How Useful are Mission Statements?

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They inform groups outside of the business what the central aim and vision is.

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They can provide motivation to employees and help to guide and direct employee individual behaviour at work.

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They are not meant to be detailed working objectives but they help to establish in the eyes of other groups ‘what the business is about’.

Criticisms of Mission Statements

 Too vague and general so that they end up saying little which is specific about the business or its future plans.

 Based on public relations exercise to make stakeholder groups ‘feel good’ about the organization.

 Virtually impossible to really analyse or disagree with.

 Often rather general, so it is common for two completely different businesses to have very similar mission statements .

Communicating the Mission Statement

 Communicating the mission statement is almost as important as establishing them. There is little point in identifying the central vision of a business- and then not letting anyone else know about it.  Businesses communicate their mission statements in a number of ways: – Published Accounts and other communications to shareholders – Internal company news letters and magazines may draw their title from part of the mission statement.

– Advertising slogans or posters are frequently based around themes of the mission statement.

Group Task

 Create a mission statement for the following: – American Standard Company (toilets) – The Estee Lauder Company (cosmetics) – Ford Motor Company (cars) – IBM (computers) – Levi Strauss and Co. (jeans) – Walt Disney Co. (entertainment)

Mini Case Study

Case: Northern Foods Source: Jones, Hall, Raffo, Business Studies 3 rd Edition, Unit 4, page 35.