Different Stakeholder Objectives and Mission Statements

Different Stakeholder Objectives and Mission Statements

1. ·

   • Constraints
     • Internal: a lack of finance to meet the chosen objectives, poor communication within the business, a conflict of interests between departments within the business and an industrial dispute with the workforce.
     • External: Changes in the law that affect the operations of the business, the state of the economy, the behaviour of competitors and the opinions and behaviours of external stakeholders.
     • Objectives and Stakeholder Conflicts
       • Taking into the account the needs of all stakeholders when setting objectives will mean in the long run all stakeholders will benefit.
       • Concentrating on one group is counterproductive as it will alienate the others.
     • Corporate Objectives - Give a sense of direction for the business and help to define the culture in which the business is organised and operates.
       • Corporate and social objectives may conflict: if one corporate objective is related to profitability for its stakeholders, spending money on social objectives add to costs and therefore reduce profits, which may be inappropriate for the shareholders.
     • Social Objectives - Having a social conscience = an effective marketing tool. Being environmentally friendly or offering sponsorship to the local community are ways to satisfy social objectives.
     • Changing Objectives
       • A firm's tactical objectives may alter depending on priorities and circumstances, in order to achieve both the implementation of the strategic plan and the firm's main goals.
       • A business may have a plan in place to deal with extreme circumstances known as its contingency plan.
     • Communications and Objectives
       • Businesses need to ensure objectives are clearly communicated to all stakeholders and that they adhere to their objectives.
         • Miscommunication could have serious results: if employees feel that growth is going to be achieved at the cost of jobs, with workers replaced by capital equipment, this can result in serious unrest.
         • Employees are likely to be resistant to change and any new ideas will have to be explained carefully, paying particular attention to the reasons for the change.
         • Miscommunication from employer to employee and vice versa can quickly escalate into industrial unrest and a lack of trust.

2. Objectives

   • A possibles motivational force for all employees.
   • Provide a greater sense of direction for the business.
   • An aid to controlling existing and future operations in the business.
   • Hierarchy of Objectives will involve:
     • The objectives that are to be put in place to achieve all this.
     • The mission or overall purpose of the business.
     • Its vision and where it wants to be in the future.
     • The aims the business has for achieving its mission and vision.
   • Strategic Objectives - How a business plans to achieve its aims/goals, often a long-term approach.
   • Tactical Objectives - the day-to-day (short-term) objectives needed to ensure the strategic objectives are achieved.
   • Objectives should be SMART:
     • SPECIFIC - the objective should state exactly what is to be achieved.
     • MEASURABLE - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved.
     • AGREED
     • TIME-BOUND - objectives should be set with a time-frame in mind. These deadlines also need to be realistic.
     • REALISTIC