3.1.1 Corpoarte Objectives

Question 1

what is the hierarchy of business objectives

Answer 1

mission statement
corporate objectives
department objectives

Question 2

define a mission statement

Answer 2

a written description of the purpose of a business

Question 3

evaluate the use of a mission statement for a business

Answer 3

+ gives staff a shared sense of purpose, encouraging cooperation
+ can convey a view of the businesses beliefs e.g. feelings about ethics
+ doesn’t have to be accurate so they can say what consumers want to hear
- HOWEVER this is bad practice and if the business is exposed it could damage the businesses reputation
- use is limited as it doesn’t go into detail about corporate strategies etc.

Question 4

what is a mission

Answer 4

overall purpose and main aims

Question 5

what are corporate objectives

Answer 5

goals of the business as a whole that help them achieve their mission

Question 6

what are departmental objectives

Answer 6

• goals for each department based on how they can help the business achieve their corporate objectives

Question 7

evaluate the use of objectives

Answer 7

+ allow for coordination among employees and raises motivation
+ helps with decision making
+ can help measure and track the performance of the business
- if the objectives don’t align with the mission statement they may lose credibility

Question 8

how do you assess the effectiveness of an objective

Answer 8

SMART
SPECIFIC- they need to tell staff what they are aiming for
MEASURABLE- the business needs to know if they have achieved it
AGREED- if there is disagreement it may cause conflict
REALISTIC- impossible objectives demotivate staff
TIME-BOUND- without a timeframe the objective isn’t urgent and the business may be inefficient