I am writing this report to talk about the purpose, objectives and responsibilities of organisations. I will also talk about the environment in which organisations operate, the stakeholders of the organisation, their needs and how the organisation deals with their conflicting needs. I will be explaining the importance of corporate strategy, strategic planning and strategic and tactical decision making within organisations, I will look at how they are made, and the purpose behind them. Discussion…
Every business has a purpose for which it exists, some purposes are common to most or all companies, such as making profit, and many purposes can be unique to its specific organisation. The purpose of the business can be found outlined in the organisation’s mission statement which is: “A sentence describing a company's function, markets and competitive advantages; a short written statement of your business goals and philosophies.” (Entrepreneur, 2014)
It can also be found in their vision statement which focuses on the potential inherent in the company's future, or what they intend to be. And the values of the organisation can also help outline their purpose. Also all companies have a clear set of aims and objectives that are designed to reach their goals and fulfill their purpose. All of these help communicate the purpose and the views of the business to its employees to provide some motivation (if they agree with these values and views) and also to their stakeholders. This is important because it can gain the loyalty or support of those stakeholders if they feel that they can relate to the company’s purpose and values. Different types of organisations have different purposes. One of the largest factors that can have an effect on the purpose of a business is its legal structure and type, for example it can be a private limited company (Ltd.), or a public limited company (Plc.). Their main purpose is always to make a profit. However, they should also have other purposes such as providing a good service or product to their target market, or helping their surrounding community in some way. Other organisations such as government organisation, although they still need to make money to survive, their main priority or purpose is to provide a service to the public. The same goes to most charitable organisations and many voluntary organisations. The company I have chosen to focus on in my report is Tesco Plc. Tesco is a Public limited company which means that it sells its shares to the public on the stock market. Tesco operates in both the secondary and tertiary sectors as it has its own brand of food and other things that are sold in their super markets, which they manufacture and process themselves, which fits in the secondary sector. They also deliver and sell goods to customers and provide them with services such as insurance and home deliveries, which classes as the tertiary sector. According to their customer service website, their core purpose is to "create value for customers to earn their lifetime loyalty". This is also their mission statement, they achieve this through their taught values; 'No-one tries harder for customers', and 'Treat people how we like to be treated'. Naturally there is an underlying aim of making profit, but it is clear that customer service is a clear priority at the top level of the company. Tesco also has clear aims and objectives. An aim is a long term goal for an organisation, e.g. to ensure customer satisfaction or to become the market leader in their industry. An objective is a medium term target that acts as a stepping stone to achieve the long term aims of the organisation. Organisations set aims and objectives for a number of reasons; to provide...
References: “A sentence describing a company 's function, markets and competitive advantages; a short written statement of your business goals and philosophies.”
Martin J. (2013), Strategy 2013, Lecture in Business Environments, 3rd Feb 2014
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