Organizational Goals, Missions, and Strategic Objectives
Apple Inc. is one of the most prosperous electronic firms in the world. This firm was started on April 1, 1976, by two scientists, Steve Jobs and Steve Wozniak. These two individuals were electronic enthusiasts. They were interested in turning their skills in electronics into a large business unit. Steve Wozniak, popularly known as Woz, was an astute electrician with a keen interest in computers. It was during this time that computers were started. Steve Jobs on the other hand was a shrewd businessman. Although Woz was more knowledgeable than Jobs in the art of designing computer hardware, Jobs was smatter in entrepreneurship.
While Woz considered his skills in making computers as a hobby, Jobs saw a huge potential of starting a computer firm that would rival the then leading computer firm, IBM. Jobs managed to convince Woz of the importance of commercializing their skills, and together, they started this company.
They later incorporated Ronald Wayne, a rich businessman who came in to help the two financially. The trio formed a formidable force, which culminated into a company that is prosperous and very profitable. Although this company had various challenges that saw it eliminate its Chief Executive Officer, who was one of the founder members, in 1985, the firm was able to overcome these challenges using several strategies.
Steve Jobs, having been forced out of the firm in 1985 as the chief executive, made a came-back in 1997 with strategies that transformed this firm into what it is currently. Evans (2012, p. 67) says that Apple is one of the firms that’s able to overcome the wave of the.com crisis of the early twentieth century that brought down many firms, especially those that were computer-based. The firm has set goals, mission, and strategic objectives.
Kennedy Book Store is the leading retail store for stationery and electronics. Started in 1979 as a family business, this firm has had consistent growth over the past decades to become the leading retail store for books and electronics. When started, the retail store had specialized in selling stationery. The two entrepreneurs had a vision of coming up with a company that can fulfill their dream of becoming the stationery store of choice in this region.
As they progressed, however, it was apparent that the level of competition was very stiff. Other companies were producing similar products within the same market. Some of these firms had a stronger financial base and a good reputation in the market. These are some of the challenges that this firm had to face at those initial stages. The management team of this firm realized that it could not avoid competition. It was evident that it had to embrace competition.
It had to come up with a mechanism that would help it be seen as an attractive firm in a highly competitive market. The management of this firm adopted the emerging technologies within the firm. It also introduced management strategies where employees felt responsible for every action they made. The management ensured that employees were given the freedom to give their opinion on how the firm can be managed. To achieve its desired goals, the firm developed clear goals, missions, and objectives to help guide the entire fraternity in their quest to become the bookstore of choice in the region.
Comparing the Vision, Mission, and Objectives of Apple and Kennedy Book Store
The vision, mission, and objectives of a firm are the basic elements of strategic management. Bissoondoyal (2006, p. 78) says that the main difference between a vision and a mission is that while the vision focuses on what the firm plans to achieve in the future, the mission statement is concerned with what the firm is doing now to achieve its objectives. The vision of a firm is always very important in charting the path to be taken by the firm. Apple’s vision statement demonstrates the far this firm sees in the competitive electronic market. The vision statement of Apple came from a statement made by its founder and former chief executive, Steve Jobs.
He argued that man is the creator of change in the world. As such, he should be above structures and systems, and not subordinate to them (Ferrell 2011, p. 113). This vision has seen this firm become very competitive. This has been its driving force in innovations and creativity. Based on this, the firm has ensured that it remains relevant in the market by introducing new products with advanced features. This vision is slightly different from that of Kennedy Book Store which strives to be the bookshop of choice in the entire region of Europe.
The mission statement of Apple may not pass as a standard mission statement. This is because it is a list of products that this firm produces, and what it does in ensuring that they remain competitive. However, by the close of this statement, there is another statement that explains its commitment to students, educators, professionals, and general consumers in providing them with desirable products that can meet their desires. On the other hand, Kennedy Book Store has clearly stated its mission statement. It says that this firm will work for hand in hand with all the relevant stakeholders in ensuring that students and institutions get the right stationery to help them achieve their goals.
Stakeholders Influence on Mission and Goals, and Meeting Stakeholders Expectations
Stakeholders have a very strong influence on the mission, goals, and strategic objectives of an organization. The two firms stated above have various stakeholders who will always influence the activities of the firm. The following diagram shows some of the stakeholders that will influence such an organization.
The above diagram shows some of the important stakeholders who will influence the strategic plans of an organization to ensure that their expectations are met. Shareholders will want to earn as many dividends from their investment as may be possible. They will also be interested in seeing their investment grow within the firm. They will, therefore, influence the strategic objectives to realize this. Customers form another important stakeholder.
They will always dictate what the firm brings to the market and the strategy to be used. The objectives of the firm must be in line with the interests of the customers in the market (Lamb 2012, p. 98). The government forms an important aspect of a firm’s external environment. It will always dictate several factors within the country. The mission and strategic objectives of a firm must be in line with the government rules and regulations.
This may come through some governmental departments. The suppliers play a pivotal role in ensuring that a firm operates normally. When developing policies, the policies must take into consideration the interest of the suppliers. The suppliers must be made to feel comfortable with the strategic goals and the mission of the firm. Finally, the general public forms a very important part of the organization.
The mission statement, the vision, and strategic objectives of an organization should always take into consideration the interest of the public. A firm may not succeed in cases where there is no goodwill from the public. All the above stakeholders have their expectations of the firm. it is therefore imperative that the organizations understand each stakeholder to determine the best way through which all their interests can be taken care of.
Explain the nature of UK economic systems and how it affects business organizations such as yours
The economic system of the United Kingdom has had an immense effect on the firms identified above. The economy of this country experienced an economic recession of 2008/2009 that hit various countries around the world. These firms struggled to survive as the purchasing power of most of their customers came down. Most of the customers considered the products of these firms as secondary. Apple’s products could not be bought by consumers who were concerned about what would be on the table today and tomorrow. Similarly, consumers of Kennedy Book Store could not make purchases of the books because there were other more pressing needs. The firms’ sales significantly dropped, and Apple had to depend on the proceeds from other markets other than this market in this country.
Conversely, when there is an economic boom in the country, firms will prosper. They will enjoy the increase in the purchasing power of their consumers. The country currently experiences stable economic growth. This is an indication that firms in the country are experiencing an economic boom.
Discuss how governments manage the national economy briefly and analyze the impact of fiscal and monitory policy on business such as your chosen organization
It is a fact that the government would always manage the national economy using fiscal and monetary policies. For instance, when there is inflation, the government would tighten lending rates. This would in turn affect the amount of money available in the economy. This would affect firms such as Kennedy Book Store, especially when it was planning to borrow some money for expansion (Lamb 2012, p. 67). When the government implements fiscal policies such as an increase in taxation, this may affect the firm because it will directly result in a reduction of the profits that the firm would have earned. There are also numerous policies that the government can implement for the benefit of firms such as the Kennedy Book Store. The government can lower lending rates for the benefit of the organizations in the country.
Analyze how competition policy and regulatory mechanism work in the UK about your chosen organization
There is very stiff competition in this industry. Kennedy Bookstore faces competition from various stores that sells stationery and other electronic products. The government of the United Kingdom appreciates the fact that the business environment should be made conducive to all the stakeholders. The country has therefore enacted laws that help guide competition in the market. Various regulations help restrain unethical policies within the environment. The United Kingdom has a free-market policy that allows firms to enter and leave the market at will. The government has however enacted laws that are meant to ensure that there is a fair practice among all the stakeholders. The regulations are to ensure that none of the firms gains an unfair advantage over other firms.
Using your chosen company as an example, explain how market structure determines the pricing and production decisions
The market structure determines pricing and production decisions. According to Lamb (2012, p. 67), the price of a product is always determined by the forces of demand and supply. In cases where there is stiff competition in the market like the industry in which this firm operates, the pricing of the products would always be set low. Similarly, when there are many firms in the market, the decision of a firm on production will be based on the available market share for that firm. When Kennedy Book Store plans to come up with a production strategy, the strategy must be based on the market share available for this firm. As Chaston (2009) states, it is only logical to produce what the market can absorb.
Using a range of examples; analyze how market forces influence the organizational response and examining how your organization will respond
Organizations must be conscious of the fact that the external environment plays a pivotal role in the internal operations of a firm. Numerous market forces have a direct impact on an organization, and as such, it is the responsibility of the organization to respond to them appropriately. For instance, when the number of competitors increases in the market, Kennedy Bookstore will have to respond by either increasing its market share internationally or protecting its local market share.
Discuss the business and cultural environment of your selected organization and assess to what extent it shapes the behavior of the organization
It is always vital to understand the business and cultural environment of a firm to be in a position to understand how it shapes the behavior of an organization. The cultural environment of this firm is shaped by the changing trends among the student fraternity. It is important to appreciate the fact that this market segment is highly affected by the peer group.
Discuss how international trade affects the UK business organization and analyze the impact of global factors on UK businesses including your chosen organization
Globalization is something that cannot be avoided in the current market. The geographical barrier that existed before has been eliminated by improved transport and communication network. The United Kingdom is one of the countries that have attracted many firms around the world. International trade affects this industry in various ways. The level of competition will be heightened, while to the customers, there will be a variety of products to choose from.
Assess the role and impact of EU policies and directives on the UK business using your organization as an example
European Union policies and directives have affected business in the United Kingdom from various fronts. The EU policies have liberalized the market, a sign that foreign firms can enter this market without any restrictions as long as they are European firms.
List of references
Bissoondoyal, U 2006, Total quality management: a practical approach, New Age International, London.
Chaston, I 2009, New Marketing Strategies: Evolving Flexible Processes to Fit Market Circumstance, Sage Publications, London.
Evans, D 2012, Social media marketing an hour a day, Wiley Indianapolis.
Ferrell, C 2011, Marketing Strategy, Cengage Learning, New York.
Lamb, C 2012, Marketing, Nelson Education, Toronto.
Zarrella, D 2009, The social media marketing book, O’Reilly, Sebastopol.