Management of Business

1. A mission statement is a concise explanation of the organization's reason for

existence. It describes the organization's purpose and its overall intention. The
mission statement supports the vision and serves to communicate purpose and
direction to employees, customers, sellers, and other stakeholders.
2. The mission statement, which is too informal and general, so that they are not specific
about the business and its plans. Too vague and general, ends up saying little about
the business and its future plans. It is possible to have two businesses with the same
mission statement.
3. Four factors that would help to ensure that corporate objectives were effective in
assisting a business to achieve its aim are:
 Size and legal form of the business.
 Number of years the business has been in operation.
 Public/ Private Sector businesses.
 Corporate culture (Corporate culture refers to the beliefs and behaviours that
determine how a company's employees and management interact and handle
outside business)
4. The conflict of stakeholder objectives is a condition in which different stakeholders
have incompatible goals. It creates a problem for the company because this can affect
its performance and success. Conflict requires companies to effectively manage
stakeholder interests. Not all stakeholders are strategic for the company. For example:
Owners generally seek high profits and so may be reluctant to see the business pay
high wages to staff.
5. It may not be appropriate because it will not help the business long-term. It must be a
long-term goal so it gives more drive for employees to work harder and helps that
business gradually improve, and therefore, they will be more fit for-profit
maximization when they are stronger. If managers want to invest more money in
developing new products lower profits will have to be accepted until the business
could reach enough capital to raise profits.
6. Business culture refers to the beliefs and behaviours that influence how employees
and leadership interact with one another and how they handle business transactions.
7. Factors: Good values and practices, consistency, positive work environment and good
reputation.
 8. If they do not work together, the focus of the business will appear confused to
outsiders and there will be disagreements between departments.
9. A method of coordinating and motivating all staff in an organization by dividing its
overall aim into specific targets for each department, manager, and employee.
10. Corporate responsibility can be referred to as voluntary actions taken by a company to
address the ethical, social, and environmental impacts of its business operations and
the concerns of its stakeholders.
11. Why good environmental practices and ethical standards in decision making may be
to the advantage of a business:
 Good ethical standards may lead to good publicity and sales of the business.
 Ethical businesses are more likely to be awarded with government contracts.
 Well qualified staff may be attracted to work for the companies with the most
ethically and socially responsible policies.
 Helps to avoid potentially expensive court cases which reduces costs of fines.
12. The overall objective of environmental auditing is to help safeguard the environment
and minimize risks to human health, determine how well the environmental
management systems and equipment are performing, verify compliance with the
relevant national, local or other laws and regulations. I would advise a chemical
company with old plant and equipment to undertake a voluntary environment audit
since it would be in compliance with proper ethical conduct. Chemicals are very
dangerous and the primary effect of chemical industry on the environment and on the
lifestyle as well, is due to the pollution, arising from the industrial activities, resulting
in gas emissions, wastewater polluting etc.
13. Decision making makes a huge impact on an organization. It can either propel it
forward and into success. Or it can destroy the company's value. A business may want
to make decisions in accordance with the environmental audit. This is so since it is
ethical and the business would reap the benefits of good ethical conduct.

No business can operate successfully without clear objectives for both the short and long
term.

Business objectives are the specific, measurable results that companies hope to maintain as
their organisation grows. When you create a set of business objectives, you focus on
specifics. This means analysing, assessing, and understanding where you are now and where
you want to be in the future. Objectives provide motivation to people in the organization.
When the work is goal-oriented, unproductive tasks can be avoided. Objectives provide
standards which aid in the control of human efforts in an organization.

Business objectives are important since they provide guidance and direction, facilitate
planning, motivate and inspire employees and help organizations evaluate and control
performance. Organizational goals inform employees where the organization is going and
how it plans to get there. When employees need to make difficult decisions, they can refer to
the organization’s goals for guidance. Objectives promote planning to determine how goals
will be achieved. Employees often set goals in order to satisfy a need; thus, goals can be
motivational and increase performance.

Evaluation and control allow an organization to compare its actual performance to its goals
and then make any necessary adjustments. For organizations, managers, and employees to
be successful more emphasis needs to be placed on making sure every employee and every
manager knows what he or she needs to accomplish in the present and future. When
employees understand needs to be done to succeed, it’s much easier for them to contribute.
It’s also tremendously easier for managers to do their jobs, to improve productivity, and to
manage efficiently. Clear purpose helps the business to be successful.

To what extent should managers of public limited companies allow environmental

considerations to influence their business decisions?

Business environment refers to conditions or factors which surround and affect

business operations. A decision-making process is a series of steps taken by an individual
to determine the best option or course of action to meet their needs. In a business context, it is
a set of steps taken by managers in an enterprise to determine the planned path for business
initiatives and to set specific actions in motion. Considering the environment while
making business decisions is deemed as ethical.  Businesses are dependent on their
reputations, so it is important for them to have clear and consistent expectations regarding
ethical standards to guide employee behavior. Many employees prefer to work for
organizations that share their own moral beliefs. A company’s ethical practices can thus have
an effect on the recruitment and retention of employees.
It is the duty of all managers to see that their organization maintains ethical practices and
behaviors. Good leaders strive to create a better and more ethical organization. Promoting an
ethical climate in an organization is critical, since it is a key component in addressing many
other issues facing the organization. Concerned customers who are very aware of
environmental issues are more likely to buy from businesses that act in an environmentally
friendly way.