STS plc collects waste from houses, offices and factories. Most of the waste is burned to produce heat and electricity for the companys own use. This saves costs and reduces the impact on the environment by not using areas of land to bury the rubbish. A recent increase in customers has meant that not all of the waste can be burned and the company has dumped it in old quarries where it causes smells and gas emissions. Investment in labor-saving equipment has allowed the business to save on wage costs. The companys new mission statement is to become the countrys number one waste business and to protect the environment for our childrens benefit. This has been explained to all shareholders in a recent letter to them, but the workers of the company were not involved in helping create the mission statement and they have not been informed of it. The latest company accounts stated: We aim to maximize returns to shareholders through a strategy of aggressive growth. Our objectives are to expand year on year. These accounts contained the following data.

 

1. a. Define the term mission statement. [2] 

 

b. Explain one benefit STS might gain from its new mission statement. [4] 

 

2. a. Explain what you understand by SMART objectives. [4] b. STSs objectives are not completely SMART. Analyze two problems that might arise from this. [8] 

 

3. STSs aim is to maximize returns to shareholders through a strategy of aggressive growth. Using the data provided, evaluate the extent to which they are being successful in achieving this objective. [8]

 

 

 

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1 a Mission Statement A mission statement is a concise statement that defines the purpose values and goals of an organization It communicates the orga... View the full answer