3.1.1 Corporate Objectives

Question 1

What is a mission statement?

Answer 1

A mission statement is a qualitative statement of an organisations aims.

Question 2

What is the hierarchy of business objectives?

Answer 2

1.) Mission statement and general aims
2.) Corporate objectives
3.) Department objectives

Question 3

What are some criticisms of mission statements?

Answer 3

Critics say they are just a public relations tool.

Question 4

What is the purpose of mission statements?

Answer 4

To define the purpose of a business in just a few sentences.

Question 5

What are the 3 uses of mission statements?

Answer 5

1.) Focus
2.) Profitability
3.) Identity

Question 6

What are the 5 limitations of mission statements?

Answer 6

1.) Can be unrealistic and over optimistic.
2.) Can be a waste of management time and resources.
3.) Can lead to conflicts and inconsistencies.when not properly written.
4.) Can be ambiguous.
5.) Can become obsolete as the business develops but the mission statement remains the same.

Question 7

What is an owners perspective on mission statements?

Answer 7

Owners will want to maximise shareholder value of the business.

Question 8

What is a managers perspective on mission statements?

Answer 8

Manager will look for core aims and objectives of the business to lead their staff / teams with.

Question 9

What is an employees perspective on mission statements?

Answer 9

Employees will look for motivational statements that make them feel proud to work for that company.

Question 10

What is a pressure groups perspective on mission statements?

Answer 10

Pressure groups will look for a clear environmental or ethical message in the mission statement.

Question 11

What is a customers perspective on mission statements?

Answer 11

Customers will look to see core business principals that are ethical.

Question 12

What is a competitors perspective on mission statements?

Answer 12

Competitors will look to see if the business is visionary, competitive, innovative and organised.