3.1.1 Corporate Objectives Flashcards
Mission Statements
A brief statement, written by the business, describing it’s purpose and objectives, designed to encapsulate it’s present operations
What do Mission Statements reflect?
Reflects goals & values of business
What do Mission statements describe?
Describes in general terms company core objectives
What type of info is included Mission statements?
- The market it operates in
- Key commercial objectives
- Values they have for stakeholders
- Their ethics
Two reasons why a business forms Mission Statements
1) To be committed to their customers-forms a promise to customers on what they can expect from their business and they aim to strive for
2) Can bring a company’s workforce together with a shared purpose-By having a mission statement it gives the employees something to believe in and strive for which creates a strong corporate culture
Corporate objectives
The objectives of a medium to large-sized business as a whole
Who sets corporate objectives?
Senior managers and directors of a business/company
What should a corporate objective be specific to?
The businesses history and vision for the future
Corporate objectives should sit well with what?
The businesses Mission statements
Corporate objectives should focus on what over time?
Their performances and results over time
Corporate should be something beginning with S…What is it?
SMART
S meaning
Specific-what the business is aiming to achieve and should refer to a particular aspect or function of the business
M meaning
Measurable-must be able to track progress so you can use it as evidence that you are actullay making progress
A meaning
Attainable-Must make sure you can reasonably accomplish your goal within a certain timeframe
R meaning
Relevant-Goals should align with values and long term objectives
T meaning
Time-Based - Realistic & Ambitious end date for task prioritisation and motivation
Department and functional objectives
The objectives of a department within a business.
Examples of departments include finance, operations, marketing
What do functional objectives directly support?
Corporate objectives
Business departmental functions are guided by what?
-corporate objectives so they should all be aligned with each other
go to book for example if confused lol
Objective
A target/outcome for a business that allows it to achieve it’s aims
What are the 3 uses of mission statement
FIP
1) Focus-can create high levels of focus and involvement from those within a business
2) Identity - Creates a sense of identity for the business and it can help establish the position in the marketplace
3) Profitability -strong corporate values which are reflected in mission statements will create profitability as employees will become more motivated + more efficient as they are aware of what they are doing on their job and they know is their a more significant purpose beyond just the general task/duty
In what order is the hierarchy of business objectives?
1) Aim
2) Mission Statement
3) Corporate Objectives
4) Departmental Functional objectives
5) Individual targets
