Practise IB Business Management SL/HL 1.3.1 by applying vision and mission statements concepts to exam-style questions.
Healthy Start (HS)
Tom Donat started Healthy Start (HS), a national chain of stores preparing and selling healthy snacks, which are produced in batches. HS's target market is teenagers and young adults. Tom was concerned about high levels of fast food consumption and youth unemployment. His vision statement for HS is: "To encourage life-long healthy eating habits and to train school leavers (drop outs) in acquiring work skills".
HS hires many school leavers without qualifications. Because of the valuable social service that HS provides, an independent online media provider will feature HS in a new online reality TV show.
All employees, including managers, start at the lowest level of the organizational hierarchy and train on the job. Job enlargement, job enrichment and intrapreneurship opportunities are available. 20 % of all profits earned are put back into HS to finance these opportunities. Staff turnover is lower than the industry average.
Competition from global fast food restaurants has intensified. Their economies of scale mean that HS struggles to increase its market share. Online reviews indicate that some customers perceive HS's snacks as healthy but overpriced and with small-sized portions.
Tom is considering two options:
- Option 1: Implement flow production. HS will buy new technology and assign each employee to a specific job on the production line. HS will increase portion sizes and keep prices the same.
- Option 2: Implement a new social media marketing campaign linked to the new online TV show. The campaign will focus on the health benefits of HS's snacks.
Describe one role of a vision statement for H S.
Describe one role of a vision statement for HS .
The role of a vision statement for H S is to inform different stakeholders of its preferred ideal future, direction/aspiration regarding life - long healthy eating habits and the recruitment of school levers.
This will help HS to set long-term objectives regarding life - long healthy eating habits/ recruitment of school leavers.
It is likely to act as an important driver for recruitment, selection and motivation of its young, unskilled workforce made up of school leavers.
Award [1] for describing one role of a vision statement. Award an additional [1] when candidates apply their response to the stimulus.
Award [1] if only a definition of vision statement is given rather than the role.
(b) Explain how the following can benefit H S :
Please note that the question is about the benefits to an organisation - HS not to the employees. Do not credit just the benefits to employees without further explanation as to how any organisation which may be HS will benefit.