- In another discussion, we pointed out the fact that there are many ways of classifying the aims and objectives of the business
- The most popular way is to divide objectives into strategic, tactical and operational objectives
- However, this is not the only way. The diagram below shows another way to look at business objectives
- Just like the method outlined above this way of grouping the objectives and aims of a business is also hierarchical
- At the top are business or corporate aims. You should know by now that businesses can also be called corporations
- Corporate Aims: Corporate aims are long-term business goals that provide the central purpose of the business. These aims are crucial in guiding the company towards its desired outcomes. In Zimbabwe, companies such as OK Zimbabwe have set corporate aims to maintain their position as the leading supermarket retailer in the country. Some additional points to consider when setting corporate aims include:
- Corporate aims should align with the overall strategic direction of the company.
- Corporate aims should be measurable, achievable, relevant, and time-specific to provide clear targets for the business to work towards.
- Corporate aims should be communicated clearly to all employees to ensure that everyone is working towards the same goals.
- Objectives: Objectives are specific targets that translate corporate aims into achievable targets. These objectives are set at different levels, including strategic, operational, and tactical levels, to ensure that everyone in the company is aware of what they need to do to achieve the company’s goals. For example, a strategic objective for a Zimbabwean mining company could be to increase its market share in the Southern African region by 10% over the next five years by expanding its product range and investing in new technology.
Advantages of Corporate Aims:
- Setting corporate aims has several advantages, including:
- Developing a sense of purpose and direction for the business.
- Checking progress and ensuring that the business is on track to achieving its goals.
- Facilitating the development of successful tactics and strategies to achieve these goals.
- Vision Statement: A vision statement is a statement of the desired future of the company. It is a roadmap that indicates what the company wants to become in the future. A Zimbabwean example of a vision statement is Econet’s “Connecting people, changing lives.” Some additional points to consider when creating a vision statement include:
- A vision statement should be aspirational and inspire employees to work towards achieving the company’s goals.
- A vision statement should be communicated clearly to all employees to ensure that everyone is working towards the same goals.
- Mission Statement: A mission statement is a statement of a business’s core aims, phrased in a way to motivate employees and stimulate interest by outside groups. A Zimbabwean example of a mission statement is Delta Corporation’s “To refresh the world, inspire moments of optimism and happiness, and create value and make a difference.” Some additional points to consider when creating a mission statement include:
- A mission statement should be specific to the business and should reflect its unique identity and purpose.
- A mission statement should be communicated clearly to all employees to ensure that everyone understands the company’s core values and goals.
Benefits of Vision and Mission Statements:
- Creating clear and compelling vision and mission statements has several benefits, including:
- Informing external stakeholders about the company’s aims and vision quickly.
- Attracting employees, potential investors, shareholders, and other stakeholders who share the company’s values and vision.
- Motivating employees and guiding and directing their behaviour and conduct.
Limitations of Vision and Mission Statements:
- However, vision and mission statements also have some limitations, including:
- They can be easily adopted by any business of any size, making them less unique and specific to a particular business.
- They can be too vague and general, making them difficult to measure or analyse.
- They can be used as a PR activity rather than a genuine reflection of the company’s values and goals.
