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Extra info for ACCA P3 Business Analysis: Study Text
Mission guides strategic decisions and provides values and a sense of direction. ter FAST FORWARD 6/12, 6/10 (a) ym a The Ashridge College model of mission links business strategy to culture and ethics by including four separate elements in an expanded definition of mission. Purpose. Why does the organisation exist? Who does it exist for? To create wealth for owners? To satisfy the needs of all stakeholders? To reach some higher goal such as the advancement of society? tud (i) (ii) (iii) Values are the beliefs and moral principles that underlie the organisation's culture.
For example, a service company that wishes to be the best in its market must aim for standards of service, in all its operations, which are at least as good as those found at its competitors. 1 The importance of mission for corporate strategy Values are acknowledged as integral elements of consumers' buying decisions; this is shown by the attention paid to them in advertising, brand building and market research. ' Studies into organisational behaviour show that people are motivated by many things other than money: employees are likely to be both more productive and more satisfied with their work when they feel that what they are doing has significance beyond the mere pursuit of a living.
D) Motivation: the first step in motivation is knowing what is to be done. Objectives must be created for all areas of performance. (e) Evaluation: performance is assessed against objectives and control exercised. cc as (a) ea These objectives can be remembered using the acronym 'PRIME'. 4 The vocabulary of strategy FAST FORWARD Strategy has its own vocabulary, though usage varies. JS&W provide a very useful list. fre The field of business strategy has its own vocabulary that you must become familiar with.