3.1.1 Corporate objectives Flashcards
define a mission statement
a mission statement declares the business’ overiding purpose and core activities in a brief qualitative statement of an organisations aims
what may corporate objectives in mission statements include?
Description of the core activities
Remind employees, directors and shareholders why the business exists
Guides decision making
Commitment to customers
what is the purpose /use of a mission statement?
focus & involve employees in the business
motivates e
creates an identity in a competitive marketplace
who is the intended audience of the mission statement?
employees and customers
what is meant by corporate objectives?
the objectives of a medium to large-sized business as a whole
what is meant by departmental and functional objectives?
the objectives of a department within a business
what do corporate objectives focus on?
the desired performance and results of the business achieving overtime
why should corporate objectives flow from the mission statement and corporate vision?
to ensure the employees are sure of the direction towards acheiving goals and
who are corporate objectives aimed at to satisfy and why?
the shareholders
as they have bought shares in the business so their input/guidance should be taken on board
-often related to profit/dividends
why should Corporate objectives be SMART?
so that the business is able to set achievable goals and not have high or low expectations of what they can achieve
what is the purpose of funtional area objectives?
to help make possible achieving the COs by setting day to day goals which include Human Resources, finance, operations, logistics and marketing
should the fucntinooal objectives flow from the COs?
yes
should be detailed and specific to what the firm does inorder to directly support the COs
- they should align to the COs
why are individual objectives set?
part of performance management and give direction to the individual within the company
why must mission statements be revised frequently?
to ensure that they are relevant for the business as if not relevant/accurate customers may lose faith in the business
what is a critical appraisal?
when a critical re-assesment involves appraisal of the following: whats the purpose?,who is the intended audience?, is it SMART? and how does the strategy followed fit with the businesses stated mission
