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Corporate aims,Corporate aims,missions and goalsmissions and goals

M.R.M.R. 22

1.1. Corporate aimsCorporate aims

Express the long-term intention of the organisation Express the long-term intention of the organisation to develop in a certain way.to develop in a certain way.

Everyone in the organisation should work towards Everyone in the organisation should work towards achieving a common vision achieving a common vision

Help build team spirit, encourage commitmentHelp build team spirit, encourage commitment Example McDonald‘s: provide friendly service in a Example McDonald‘s: provide friendly service in a

relaxed, safe and consistent restaurant relaxed, safe and consistent restaurant environmentenvironment

Small companies do not write down their aimsSmall companies do not write down their aims

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Corporate aimsCorporate aims

Whether stated or unstated – corporate Whether stated or unstated – corporate aims act as a basis upon which to form aims act as a basis upon which to form goals or objectives for the organisation goals or objectives for the organisation allows delegationallows delegation

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2.2. Mission statementMission statement

a qualitative statement of the organisation a qualitative statement of the organisation aims – intended to motivate within the firm aims – intended to motivate within the firm and to convince those outside it of the and to convince those outside it of the company‘s commitmentcompany‘s commitment

attempt to put corporate aims into wordsattempt to put corporate aims into words should identify positive characteristics such should identify positive characteristics such

as creativity and quality rather than as creativity and quality rather than maximising profitmaximising profit

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The mission modelThe mission model

PurposePurpose ValuesValues Standards and behaviourStandards and behaviour StrategyStrategy Are interdependentAre interdependent E.g. Unilever: raise the quality of lifeE.g. Unilever: raise the quality of life Coca-Cola: our mission is to get more Coca-Cola: our mission is to get more

people drink Coke than waterpeople drink Coke than water

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3.3. Purpose Purpose

Identification for employées‘ work.Identification for employées‘ work. Mission statement identifies several Mission statement identifies several

stakeholders in whose interests the stakeholders in whose interests the business is said to be runbusiness is said to be run

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4.4. Values Values

The values reflect the beliefs among the The values reflect the beliefs among the employées. This unwritten code is called culture of employées. This unwritten code is called culture of business business

Mission statement provides an opportunity to Mission statement provides an opportunity to shape this business cultureshape this business culture

Set of values which employees can feel proud of – Set of values which employees can feel proud of – motivates them to work towards the organisation‘s motivates them to work towards the organisation‘s objectiveobjective

Difficult in large companies where each Difficult in large companies where each department has its own culture – no dominant department has its own culture – no dominant corporate culturecorporate culture

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Sources of business cultureSources of business culture

Company routines – everyday decisionsCompany routines – everyday decisions Formal controls – organisation structure Formal controls – organisation structure

(vertically by functions, horizontally by (vertically by functions, horizontally by layers of hierarchy)layers of hierarchy)

Peer structure – interrelationships between Peer structure – interrelationships between individuals and groupsindividuals and groups

Symbols: language, signs of statusSymbols: language, signs of status Rituals and myths – behaviour, stories from Rituals and myths – behaviour, stories from

the pastthe past

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Attitudes and business cultureAttitudes and business culture

Body shop – soft, less profit-focused culture Body shop – soft, less profit-focused culture more socially based (opposite: more socially based (opposite: shareholder)shareholder)

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Approach to key issuesApproach to key issues

Attitude towards risk: entrepreneurial – risk Attitude towards risk: entrepreneurial – risk averseaverse

Reward distribution: ‚them and us‘ – fat catsReward distribution: ‚them and us‘ – fat cats TeamworkTeamwork Equity: more based in small firms (Nissan Equity: more based in small firms (Nissan

plant in Sunderland)plant in Sunderland)

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Types of business cultureTypes of business culture

Power culture – pleasing the bossPower culture – pleasing the boss Role culture – power depends on the Role culture – power depends on the

positionposition Task culture – power lies in the expertiseTask culture – power lies in the expertise Person culture – within functional Person culture – within functional

departments (lawyers, accountants)departments (lawyers, accountants) Principal reason for introducing a mission Principal reason for introducing a mission

statement: provide a common purpose statement: provide a common purpose amongst employéesamongst employées

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Behaviour standardBehaviour standard

IBM: all managers should operate an open IBM: all managers should operate an open door policydoor policy

Criticism: mission statements are only part Criticism: mission statements are only part of a PR strategyof a PR strategy

Missing link: identify the standars of Missing link: identify the standars of behaviour expected from the employees behaviour expected from the employees which symbolise the purpose, strategy and which symbolise the purpose, strategy and values of the organisationvalues of the organisation

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Developing a mission statementDeveloping a mission statement

If all staff are involved in preparing (and agree the If all staff are involved in preparing (and agree the outcome) – a mission statement, the result will be a outcome) – a mission statement, the result will be a statement of shared valuesstatement of shared values

E.g. clothing retailer: maximise sales and serve the E.g. clothing retailer: maximise sales and serve the customer in the best waycustomer in the best way

E.g. a woman tries on, appears to like, a dress which looks E.g. a woman tries on, appears to like, a dress which looks ill-fitting at the back, should you step in to point this out?ill-fitting at the back, should you step in to point this out?

All staff should answer in the same way. The sales-driven All staff should answer in the same way. The sales-driven staff might say no. The risk of losing the sale would be too staff might say no. The risk of losing the sale would be too great.great.

Focus on the customer: yes Focus on the customer: yes customer confident in the customer confident in the honesty of the staff, will return.honesty of the staff, will return.

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Length of a mission statementLength of a mission statement

Can varyCan vary 1 page 1 page single phrase single phrase Others prepare extensive documents Others prepare extensive documents

consisting of the purpose, strategy and consisting of the purpose, strategy and values of the organisation in detailvalues of the organisation in detail

Statement should be memorableStatement should be memorable

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Criticism of mission statementsCriticism of mission statements

No purpose than to gain publicityNo purpose than to gain publicity Common for quite different companies to have Common for quite different companies to have

very similiar mission statementsvery similiar mission statements Time and effort could be used more effectively Time and effort could be used more effectively

elsewhere in the businesselsewhere in the business Even when the statement sets out the Even when the statement sets out the

organisation‘s purpose, strategy and values – organisation‘s purpose, strategy and values – firms fail to implement the ideasfirms fail to implement the ideas

86 % of the organisations have a mission 86 % of the organisations have a mission statementstatement