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BUSINESS PHILOSOPHY by Mind Map: BUSINESS PHILOSOPHY

1. A business philosophy is a system of ideas about the meaning and the role of business.

2. PlANNING PROCESS It is one of the most effective management tools for reducing risks of business.

2.1. Mission

2.1.1. A mission statement is a declaration of the unique purpose and scope of operations that distinguishes the organization from others of its type.

2.2. Goals

2.2.1. A goal is a future target or end result that an organization wishes to achieve.

2.3. Plans

2.3.1. A plan is the means devised for attempting to reach a goal.

3. MISSION It is the broadest and highest level of goals.

3.1. CORE VALUES are a few values (no more than five or so) that are central to the firm.

3.1.1. excellent customer service

3.1.2. creativity

3.1.3. integrity

3.1.4. pioneering technology

3.1.5. social responsibility

3.2. CORE PURPOSE is the reason why the firm exists.

3.2.1. relatively unchanging

3.2.2. are not selected

3.2.3. discovered

3.3. VISIONARY GOALS are the lofty objectives that the firm's management decides to pursue.

3.3.1. Target

3.3.2. Common enemy

3.3.3. Role model

3.3.4. Internal transformation

4. A "call–to–action" mission statement

4.1. is a measurable, tangible goal

4.2. elicits an emotional, motivational response in company employees

4.3. is easily understood

4.4. is firmly rooted in the competitive environment in which the company operates

5. ORGANISATIONAL GOALS The setting of goals and developing of plans leads to goal attainment and to organizational efficiency and effectiveness.

5.1. STRATEGIC GOALS

5.1.1. focus on long–range issues – 5 years or more

5.2. TACTICAL GOALS

5.2.1. aim at intermediate–range issues – 1 to 5 years

5.3. OPERATIONAL GOALS

5.3.1. orientate toward short–range issues –1 year or less

6. Management by objectives (MBO) method:

6.1. allows organizations to facilitate the linking of goals and plans

6.2. is a philosophy based on converting organizational goals into personal goals