Mission, Corporate Objectives & Strategy
Business Management: IB Diploma, topic 1.3.3
The Distinction Between Strategy and Tactics
Businesses can use strategic and tactical approaches to achieving their objectives.
Strategy
- Strategic approaches are long-term plans which require many resources and can be difficult to reverse once implemented.
Tactics
- Tactical approaches are short-term plans which often require few resources and can be stopped or reversed if this is required.
The Link Between a Mission, Corporate Objectives, and Strategy
A business' mission, corporate objectives, and strategy all inform one another.
The link between a mission, corporate objective and strategy
- A business mission will inform the choice of corporate objectives as corporate objectives will be designed in such a way to meet the overall mission.
- Businesses can use strategies to work towards their overall corporate objectives.
Example
- Google’s mission is to organise the world’s information.
- This informs Google’s objectives which include improving user experiences and a strategy to support this objective is investing in long-term research and development to discover new technologies.
The difference between strategic and functional decisions
- Strategic decisions made by businesses will influence departmental or functional decision making as every function within a business must support the overall organisation.
Test yourself on Mission, Corporate Objectives & Strategy
What two approaches can businesses use to achieve their objectives?
What are corporate objectives designed to do?
What will strategic decisions influence?