Syllabus Content

By the end of the chapter, you should be able to understand:

1. the meaning of a mission and vision statement (AO2)
2. common business objectives such as growth, profit, protecting shareholder value and ethical objectives (AO2)
3. the meaning of strategic and tactical objectives (AO3)
4. the meaning and significance of corporate social responsibility (CSR) (AO3).

Vision statement and mission statement

Vision statement is a long term goal, a dream or understanding of what the future should look like, serves to inspires and motivate everyone in the company.

Mission statement is a short statement that defines what the organisation does, right now, in order to achieve its vision.

Defensive strategies are used when the company’s position is weak and there is a threat from the external environment. These strategies, such as selling at cost, are necessary for the company’s survival.

Growth strategies are used when the company is in a position of strength and there are opportunities in the market.

Re-orientation strategies are used when the business might be in a weak position, but there are opportunities in the market.

Defusing strategies are used when the company is in a position of strength, but there are threats in the external environment.

Common business objective

Strategic and tactical objectives

CSR

Corporate social responsibility (CSR) is an approach under which businesses consider the interests of all groups in society as a central part of their decision-making.