This is a solution of Unit 1 Business Environment Lecture Note Three that describes about Developing business
Unit 1 Business Environment Lecture Note Three
|Week: 2||Course: HND Level 4||Subject: BUSINESS
|Last week session:New Group and New semester||Unit:1||Class size: 20-30|
|Time: 10:00 am
|Tutor: Israel Oyedele
|Prior Learning:HNC L4 Btec Business Certificate||Cohort: SEPT-2015|
|Lesson Aim: AC 1.2b: Stakeholders Further Analysis|
|Links to other units:||With all other management units within the HND specification|
|Learning objectives:||Detail of objectives:||Assessment Strategies (tick as applicable)|
|All will||Describe the extent to which an Organisation meets the objectives of different stakeholders||Question & Answer —quiz||ü|
|All will||Individual Learning Review.||ü|
|All will||Group/ Individual Presentation||ü|
|Assignment / homework||ü|
|Tests / exercises|
|Teaching and Learning Techniques Planned (tick as applicable)|
|Whole class teaching||ü||Practical demonstration|
|Pair / group work||ü||Using video / TV|
|Individual project work||Radio / audio tapes|
|Role-play exercises||Data projector||ü|
|Presentation||Computer / IT||ü|
|Practical exercise||ü||Flip chart||ü|
|Other generic issues to be addressed – None|
|Health & Safety Risk Assessment:||None, but the basics were explained.|
|Inclusion / differentiation / Diversity|
|Needs:||Differentiated learning activity: Separate worksheet for dyslexic learner|
|Method of Assessment||
|To create an active environment||
Q & A
|To ensure understanding of last lesson||
|Question for Tutor from last lesson||
Understanding of how to access information and knowledge needs
|AC 1.2bStakeholders Further Analysis||Lecture notes on the white board
Question for Tutor from this lecture
Q & A
|12noon-12:35pm||Group activities/Group discussions||How information can be gathered||PowerPoint presentation||Questions from learners||
|12:35-13:25||Lecture/Discussions on LO 1||Group Activity||Group work||Group feedback||Flip chart||Team work|
|13:40-13:45||Open session||For questions||On the two AC 1.1&1.2a|
|13:45-14:00 [Summary and Guided learning/reading for next lesson]
End of Session
|Homework: To do some basic reading on AC 1.3||Tutors session evaluation|
AC 1.2b: Stakeholders Further Analysis
NOW we should be able to Develop and determine the a corporate MISSION, VISION, AND VALUES such as the one for British Airways plc, fit into the planning-organizing-leading-controlling (P-O-L-C) framework of the company.
What does (P-O-L-C) represents in this framework of analysis?
The letter “P” in the P-O-L-C framework stands for “planning.” Good plans are meant to achieve something—this something is captured in verbal and written statements of an organization’s mission and vision (its purpose, in addition to specific goals and objectives).
With a mission and vision, a company like British Airways can craft a strategy for achieving them, and their benchmarks for judging their progress and success are clear goals and objectives.
Mission and vision communicate the organization’s values and purpose, and the best mission and vision statements have an emotional component in that they incite employees to delight customers. The three “planning” areas of the business environment cover
- Mission and vision,
- Strategy, and
- Goals and objectives.
This is how these pieces work together.
The Roles of Mission, Vision, and Values
Mission, Vision, and Values
Mission and vision both relate to an organization’s purpose and are typically communicated in some written form.
Mission and vision are statements from the organization that answer questions about who we are, what do we value, and where we’re going. A study by the consulting firm Bain and Company reports that 90% of the 500 firms surveyed issue some form of mission and vision statements.
- Bart, C. K., & Baetz, M. C. (1998). The relationship between mission statements and firm performance:
- An exploratory study. Journal of Management Studies, 35, 823–853
Moreover, firms with clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those without them, with the caveat, which is ‘warning or proviso’, that they related to effectiveness only when strategy and goals and objectives were aligned with them as well.
A mission statement communicates the organization’s reason for being, and how it aims to serve its key stakeholders. Customers, employees, and investors are the stakeholders most often emphasized, but other stakeholders like government or communities (i.e., in the form of social or environmental impact) can also be discussed. Mission statements are often longer than vision statements. Sometimes mission statements also include a summation of the firm’s values.
Values are the beliefs of an individual or group, and in this case the organization, in which they are emotionally invested.
The Starbucks mission statement describes six guiding principles that, as you can see, also communicate the organization’s values:
Provide a great work environment and treat each other with respect and dignity.
Embrace diversity as an essential component in the way we do business.
Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.
Develop enthusiastically satisfied customers all of the time.
Contribute positively to our communities and our environment.
Recognize that profitability is essential to our future success.
Retrieved October 27, 2008, from http://www.starbucks.com/aboutus.
A vision statement, in contrast, is a future-oriented declaration of the organization’s purpose and aspirations. In many ways, you can say that the mission statement lays out the organization’s “purpose for being,” and the vision statement then says, “Based on that purpose, this is what we want to become.” The business strategy should flow directly from the vision, since the strategy is intended to achieve the vision and thus satisfy the organization’s mission. Typically, vision statements are relatively brief, as in the case of Starbuck’s vision statement, which reads: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”
Any casual tour of business or organization Web sites will expose you to the range of forms that mission and vision statements can take. To reiterate, mission statements are longer than vision statements, often because they convey the organizations core values. Mission statements answer the questions of “Who are we?” and “What does our organization value?” Vision statements typically take the form of relatively brief, future-oriented statements—vision statements answer the question “Where is this organization going?” Increasingly, organizations also add a values statement which either reaffirms or states outright the organization’s values that might not be evident in the mission or vision statements.
Roles Played by Mission and Vision
Mission and vision statements play three critical roles: (1) communicate the purpose of the organization to stakeholders, (2) inform strategy development, and (3) develop the measurable goals and objectives by which to gauge the success of the organization’s strategy. These interdependent, cascading roles, and the relationships among them, are summarized in the figure.
In an incredibly tough trading environment we have to focus hard on pulling ourselves through the immediate crisis, while preparing the business for better economic times. This year we have mapped out a long-term vision for our business. It is to be the world’s leading global premium airline.
Our strategy and objectives
Our vision is to become the world’s most responsible airline, and we have brought all our corporate responsibility activities together under the banner ‘One Destination’. We have set challenging goals for further reductions in our carbon emissions, reducing and recycling waste and minimising air and noise pollution. We have continued to invest significantly in our community relations programme and are proud of our record of raising money for charities, both as a business and through the incredible energy and commitment of our people. See more about : HND Hospitality Management Assignment
What we offer will appeal to customers across the globe. Wherever we operate, individuals and business travellers alike will want to fly with us whenever they can.
We will make sure all our customers enjoy a unique premium service whenever and wherever they come into contact with us. Our customers will recognise that the service we offer is worth paying that little bit more for.
We will remain focused on aviation, moving people and cargo is our core business. We will develop new products and services to complement this.
The decisions we are taking now will determine how strongly we emerge from the downturn. The airline industry is in a period of unprecedented change and we have developed a clear vision for our business. This vision is guiding us in how we deal with current market conditions and in how we go about building a sustainable future for our business.
Five Key Goals – the steps we will take to achieve our vision:
Be the airline of choice for long-haul premium customers
- So that people will want to fly with us whenever they can. We will continue to introduce great products such as the new business class seat on long-haul and a restyled First cabin. To complement our Heathrow home – Terminal 5 – we will redevelop premium facilities in New York JFK and continue to invest in lounges in other key cities.
[Check the link: British Airways/strategy, vision, value and objectives].
Deliver an outstanding service for customers at every touch point…
- By training our colleagues, on the ground and in the air, in world-class hospitality and customer service. Customers can already check-in from their mobile or PDA, and we will continue to enhance ba.com. A new in-flightentertainment system will be launched later this year.
Grow our presence in key global cities…
- …to provide the best global connectivity for our customers. In addition to our new long-haul service from London City to New York JFK, our network depth will be strengthened with more flights to Dubai and Johannesburg and a return to Saudi Arabia.
Build on our leading position in London…
- …the world’s biggest aviation market. Ensuring Heathrow remains a world-class hub is vital to give us a strong London base to serve the largest international long-haul markets. We will acquire new slots, support plans for a third runway and work with BAA to improve baggage and terminal facilities at Heathrow.
Meet our customers’ needs and improve margins through new revenue streams…
- …by building profitable ancillary services that offer customers great value and re-enforce our brand. Our aim is to grow our mileage business and boost revenues from third-party engineering, in-flight sales and a new online retail website. On ba.com we have now launched a range of great value hotel and car hire options packaged with our flights.
Similarly, Toyota declares its global corporate principles to be:
Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world.
Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.
Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities.
Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.
Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management.
Pursue growth in harmony with the global community through innovative management.
Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
Retrieved October 27, 2008, from http://www.toyota.co.jp/en/vision/philosophy.
‘A stakeholder is any individual, group, or organisation that is affected by, and therefore has an interest in the decisions and behaviour of the business.’
Stakeholders And Stakeholder Analysis
Already established – Stakeholders are individuals or groups who have an interest in an organization’s ability to deliver intended results and maintain the viability of its products and services.
This might not be a direct effect as some stakeholders have public interest motivations.
For example:An environmental pressure group has an interest in a business on account of the perceived harm its action cause to the environment rather than the direct effect on the groups members.
Other stakeholders have a direct interest because of the benefits or harm of the firm’s actions to them.
All the internal members of a business are stakeholders, including employees, directorsand shareholders.
External stakeholders include customers, suppliers of materials, competitors, politiciansand policy-makers and then community or general public.
This is the main reason managers must consider stakeholders’ interests, needs, and preferences.
Considering these factors in the development of a firm’s mission and vision is a good place to start, but first, of course, you must identify critical stakeholders, get a handle on their short- and long-term interests, calculate their potential influence on your strategy, and take into consideration how the firms strategy might affect the stakeholders (beneficially or adversely).
Influence reflects a stakeholder’s relative power over and within an organization; importance indicates the degree to which the organization cannot be considered successful if a stakeholder’s needs, expectations, and issues are not addressed.
For example- one key stakeholder group comprises the CEO and the members of the top-management team. These are key managers, and they might be owners as well.
This group is important for at least three reasons:
- Its influence as either originator or steward of the organization’s mission and vision.
- Its responsibility for formulating a strategy that realizes the mission and vision.
- Its ultimate role in strategy implementation.
INDICATIVE READING FOR LEARNERS
Sawyer M, (ed) – The UK Economy: A Manual of Applied Economics, 16th edition (OUP Oxford; 2004) ISBN: 9780199266517 Begg D – Foundations of Economics, 4th edition (McGraw-Hill Higher Education, 2009) ISBN: 9780077121884 Morrison J – International Business Environment: Global and Local Marketplaces in a Changing World (Palgrave Macmillan, 2006) ISBN: 9781403936912 A & C Black Publishers Ltd – Whitaker’s Almanack 2010, 142nd Revised edition (A & C Black Publishers Ltd, 2009) ISBN: 9781408113646
Harvard Business Review (Harvard Business Publishing) The Economist (The Economist Newspaper Ltd) The broadsheet newspapers have daily business sections. Many business stories will appear in the news sections.
www.direct.gov.uk/en/index.htm the government’s portal www.berr.gov.uk has sections on business support, Europe, Business Law and regional development as well as other materials
www.ac777.dial.pipex.com/bes/index.html Online journal for British Economy Survey www.competition-commission.org.uk/ Competition Commission’s web site – regulates competition between companies in the UK by conducting in-depth inquiries www.economicsnetwork.ac.uk/journals is a directory of materials that can be used for teaching and covers a broad spectrum of business and economics
www.ofgem.gov.uk/Pages/OfgemHome.aspxis the web site of the Office of theGas
and Electricity Markets. Each industry regulator has a similar
site www.bized.co.uk/ Bized provides a selection of teaching and learning resources
www.bbc.co.uk/news/business/ the BBC web site’s business section
http://europa.eu/index_en.htm The website of the European Union
www.thetimes100.co.uk includes a number of business and economics oriented case
Television news, current affairs and business programmes will also provide useful additional and up to date material on business and the economy often with special features on particular business environment subjects. Many programmes are archived and can be viewed on demand.
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