Organisational objectives 3 On completing this chapter you should be able to: Know and understand

Source: 
www.siemens.com
Points to consider
• 
What do you understand by the terms 
‘business objective’ and ‘strategy’ from this 
case study?
• 
What are likely to be the benefits to Siemens 
of having a clear and specific corporate 
objective?
• 
Why might Siemens have to change its 
objectives if there are changes in the external 
environment?
Key concept link
The objectives of an organisation will reflect 
its culture. Social enterprises will not focus on 
profit alone because the people who operate 
and control them have different values, 
attitudes and beliefs from those who control 
and operate profit-seeking organisations. 
Objectives of any organisation may have to 
change over time – for example, to reflect a 
major change in the external environment.
Introduction
Businesses of any size can bene
fi
t from setting clear objectives. In small businesses, 
such as sole traders, these objectives are often not written down or formalised in any 
way, but the owners will usually have a clear idea of what they are trying to achieve. In 
partnerships, it is important for partners to agree on the direction their business should 
take to avoid future disagreements. Limited companies must state the overall objectives 
of the business in their Memorandum and Articles of Association, but this often lacks 
much strategic detail. This chapter focuses on the importance of business objectives, the 
di
ff
erent forms that these can take, including ethical and social objectives, and how they 
can be used to direct the work of employees in an organisation.
Mission statements and vision 
statements
Mission statements
outline the overall purpose of the organisation. A 
vision 
statement
, on the other hand, describes a picture of the ‘preferred future’ and outlines 
how the future will look if the organisation achieves its mission. It is a clear statement of 
the future position that o
ff
ers the ideal of what owners and directors want their business 
organisation to become.
Organisational objectives