SYLLABUS 3

CORPORATE SOCIAL

RESPONSIBILITY

3.1.1

Evaluate the role and scope of corporate objectives

and goals

CORPORATE OBJECTIVES

Objectives represent a managerial commitment to achieve

specified result in a specified period, of time They clearly

spell out the quality of performance to be achieved, the

time period and the person who is responsible for the

achievement of the objectives.

Objectives are more specific and narrower

Objectives are always measurable and particular

It vary with the hierarchical level in the organization,

becoming more focused and short term going down from

top level to front line managers.

Objectives are critical for organizations effectiveness and

efficiency

CHARACTERISTICS OF

OBJECTIVES

Specific and unambiguous

Time horizon

Flexible

Attainable

Measurable

Multiple objectives

IMPORTANCE OF OBJECTIVES

Objectives helps to define the organization in its

environment

Objectives helps in coordinating decisions and decision

maker

It also helps in formulating strategies

It provides standards for assessing organizational

performance

3.1.2

Evaluation of ‘mission’, ‘vision’ and ‘strategic

intent’ statements.

MISSION STATEMENT

“It is a statement of the overriding direction and

purpose of an organization”

It is the statement showing the overriding purpose of the business

It should provide overall framework for the objectives and strategies of

the organization

Assist in establishing difference from its competitors and creating

competitive advantage

It provides a way of defining the business

Should be motivational in nature and provide direction and purpose

It should underpin and guide the plans for the future actions of the

company

VISION

“An aspirational description of what an organization

would like to achieve or accomplish in the mid-term

or long-term future”

Help you communicate your company's goals to employees and management in a single sentence or a few concise paragraphs.

It shows the future state of the organization

Where the business wants to be

Helps organisation to remain focused and protects from drifting away for the set course

Acts as a motivational factor for employees and also as a means of strategy selection

STRATEGIC INTENT

It is the concept of strategic intent makes clear WHAT AN

ORGANISATION .

Hamed and Prahalad coined the term strategic intent. A

few aspects about strategic intent are as follows:

It is an obsession with an organization.

This obsession may even be out of proportion to their

resources and capabilities

3.1.3

Evaluate the concepts of ‘strategic stubbornness’ and

‘strategic drift’.

STRATEGIC DRIFT

Strategic drift is where strategies progressively fail to

address the strategic position and performance

deteriorates.

It can waste time, money and valuable resources

It will increase the total operating cost

It will lead to far away from achieving competitive

advantage

HOW TO AVOID STRATEGIC

DRIFT?

Develop a flexible environment within the organization

Managers needs to be willing to listen to the views and

opinions of their subordinates

Managers need to be able to clearly identify the nature of

new challenges.

Organizations must have to plan a comprehensive, well-

focused, and clearly stated set of strategies

3.1.4

Critically evaluate the role of ‘gap analysis’ in setting

objectives.

GAP ANALYSIS

It is the comparison of actual performance with

desired performance.

Gap analyze is a formal study of what a business is

doing currently and where it wants to go in the

future.

It helps the business to set realistic objectives and

as a basis for identifying the extent to which existing

strategies will fail to meet performance objectives in

the future.

MERITS OF GAP ANALYSE

It forces management to be forward-thinking.

It encourages an analysis to be made of the forces which may either help or hinder the achievement of future objectives.

It can be used as a dampening device to convert either over-optimistic or over-pessimistic objectives to more realistic ones.

It encourages management to think about the strategies they can use in order to close gaps; which is probably the most important advantage from a strategic planning point of view.