About This Chapter

An organization has to have key objectives that define the aims that any strategy attempts to fulfil this is the realm of strategic intent. This chapter explores the issues surrounding an organization s mission, goals and objectives. The hierarchy of objectives in an organization is discussed, as is the use of the balanced scorecard approach.

Introduction

Before an organization starts to make judgements about how it is going to compete, fundamental decisions about the organization s overall method of operation and the areas it wishes to serve have to be articulated. A conscious statement of the primary direction and purpose of the organization has to be the key foundation upon which objectives and strategy are based. This rationale behind the company s existence usually comes in the form of a mission statement and is meant to act as a guiding light to all personnel within the organization.

Mission

The mission of the organization is the unique purpose that distinguishes it from other companies and defines the boundaries of its operations. The mission statement is a proclamation of the organization s primary objective that encapsulates its core values. The organization s aims and aspirations are the result of a series of influences (see Figure 7.1).

Figure 7.1: Influences on an organization s mission and objectives (Source: Adapted from Johnson and Scholes, 1999)

There are four major sources of influence acting upon the core meaning behind an organization s existence. Johnson and Scholes (1999) refer to these as:

• Corporate governance. To whom should...