Transcript Functional Objectives and Strategies

FUNCTIONAL OBJECTIVES AND
STRATEGIES
USING OBJECTIVES AND STRATEGIES
Kenichi Ohmae
BUSS3.1 Using Objectives and Strategies
“ The strategist’s method is very simply to challenge
the prevailing assumptions with a single question:
Why?”
FUNCTIONAL OBJECTIVES AND STRATEGIES
IN THIS TOPIC YOU WILL LEARN ABOUT:
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Functional objectives and their relationship with
corporate objectives
The relationship
between functional
objectives and
strategies
BUSS3.1 Using Objectives and Strategies
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WHAT ARE OBJECTIVES?
Quantifiable targets or goals to be achieved
within a given time frame
 SMART Objectives
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Specific
Measurable
Agreed
Realistic
Timed
Provides focus and direction
 Sets a benchmark against which
to measure performance
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BUSS3.1 Using Objectives and Strategies
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CORPORATE AND FUNCTIONAL OBJECTIVES
Corporate Objectives
The long term goals of a business
Read the article & discuss what corporate
objectives Jaguar might be aiming to achieve
Survival
Profit
Growth
BUSS3.1 Using Objectives and Strategies
Informs decision making
 Provides strategic direction
 Forms the overall guiding principles of the business
 Guides corporate objectives
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CORPORATE OBJECTIVES
AN EXAMPLE : HEWLETT PACKARD
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Underlying beliefs supporting this objective:
 The highest standards of honesty and integrity are
critical to developing customer and stakeholder loyalty.
 The betterment of our society is not a job to be left to a
few; it is the responsibility to be shared by all.
 This objective is essential to delivering on the brand
promise.
Source :
www.welcome.hp.com
BUSS3.1 Using Objectives and Strategies
Global Citizenship - Good citizenship is good business.
We live up to our responsibility to society by being an
economic, intellectual and social asset to each country and
community in which we do business.
CORPORATE AND FUNCTIONAL OBJECTIVES
Functional Objectives
The medium to long term goals of the
functions within a business, helping it
achieve its corporate objectives
Corporate
Objectives
Finance
Marketing
HR
Operations
BUSS3.1 Using Objectives and Strategies
Focussed on corporate objectives
 Provides strategic direction within each function
 Impacts upon other functional objectives
 Must be coordinated
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FUNCTIONAL OBJECTIVES
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Objective:
Cost Minimisation
How might each functional area contribute
towards achieving this objective?
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Exam tip: when reading the BUSS3 case study try
to identify the corporate and functional objectives.
Go back to the HP objectives and for each one discuss
how it will impact upon the objectives of each
functional area.
BUSS3.1 Using Objectives and Strategies
Businesses will set a range of functional objectives,
including minimising cost and increasing market
share.
CORPORATE OBJECTIVES
AN EXAMPLE : HEWLETT PACKARD

Underlying beliefs supporting this objective:
 The highest standards of honesty and integrity are
critical to developing customer and stakeholder loyalty.
 The betterment of our society is not a job to be left to a
few; it is the responsibility to be shared by all.
 This objective is essential to delivering on the brand
promise.
Source :
www.welcome.hp.com
BUSS3.1 Using Objectives and Strategies
Global Citizenship - Good citizenship is good business.
We live up to our responsibility to society by being an
economic, intellectual and social asset to each country and
community in which we do business.
FUNCTIONAL STRATEGIES
Functional Strategies
You will learn more about functional objectives and
strategies in the remainder of this unit.
You will need access to the
internet to watch this video
clip
Identify how each functional area has responded to
Tesco’s corporate objective of growth
Financial Objectives and Strategies BUSS3.2 to BUSS3.6
Marketing Objectives and Strategies BUSS3.7 to BUSS3.10
Operational Objectives and Strategies BUSS3.11 to BUSS3.15
Human Resources Objectives and Strategies BUSS3.16 to BUSS3.19
BUSS3.1 Using Objectives and Strategies
A detailed plan of how a functional area in a business
will go about achieving the functional objectives
ACTIVITY
BUSS3.1 Using Objectives and Strategies
ACTIVITY – STRATEGIES FOR SUCCESS
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What are your objectives for 5-10 years from now?
To achieve these what are your medium term objectives?
To achieve these what are your short term objectives?
What strategies can you adopt this year to work towards
these objectives?
You will need access to the
internet to watch this video
clip.
BUSS3.1 Using Objectives and Strategies
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The BUSS3 examination is called “Strategies for Success.” It
will ask you to look at corporate and functional objectives as
well as recommend and justify an appropriate strategy.
Moving from AS to A2 marks quite a big step up in what will be
required of you in achieving success, including more extended
writing.
It is hence a good time to think about your own objectives and
strategies