Objectives, Strategy and Tactics
- Objectives medium-to-long term targets, give a sense of direction by defining the purpose and aims of the organization, often be communicated through the mission statement
- Strategy are long term targets, it decide the way the organization will grow
- Tactics are short-term targets made on daily basis, they must be appropriate in order to achieve that objectives and must follow the strategy.
Mission vs Vision Statement
- A Mission Statement defines the organization's purpose and primary objectives
- Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values
- Objectives medium-to-long term targets, give a sense of direction by defining the purpose and aims of the organization, often be communicated through the mission statement
- Strategy are long term targets, it decide the way the organization will grow
- Tactics are short-term targets made on daily basis, they must be appropriate in order to achieve that objectives and must follow the strategy.
Mission vs Vision Statement
- A Mission Statement defines the organization's purpose and primary objectives
- Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values
Inside IKEA
1)
IKEA objectives: To offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.
IKEA strategies
- Self assembly feature cuts operational & transportation cost
- Concentrate on invidual marketing rather than mass marketing
- Limited warranty and service model after that
- Opening small retail store and segmented marketing
- Diversity in business
- Country specific management style
- Standardized retailer selection
- Financial stability, independence and flexibility
- etc,....
IKEA tactics
For example : in year 2011
- lower prices by 2.6%
- expand with the opening of 7 new stores
- invest EUR 40 million in solar panels and renewable installations in new-built stores
- dealing with competition from China and India
- etc…
2) Importance of IKEA objectives:
"To offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices
so low that the majority of people can afford to buy them "
This objective kind of give IKEA employers and employees the sense of growing direction. It also forms the foundation for IKEA decision-making: try to reduce the price as much as possible (but not at any price, it still want to maintain the quality of products). It indirectly guides the way IKEA products are designed, manufactured, transported, sold and assembled, therefore it is the base of all IKEA strategies and tactics. IKEA's objectives provides a basis for measuring and controlling the performance of the workforce ( the designing and functioning,...) , the management and the entire business.
3) IKEA vision & mission statement:
IKEA vision statement: To create a better everyday life for the majority of people
IKEA mission statement: Offer a wide range of well-designed, functional furnishing products at prices so low that as many people as possible, will be able to afford them ( IKEA 1994).
4) About IKEA mission statement
- Explain what IKEA is trying to achieve: high standard of quality and to produce long lasting products with lower prices.
- Outlines how IKEA vision statement (To create a better everyday life for the majority of people) can be achieve.
- Highlights IKEA value: good products with low price