3.1.1 Corporate objectives Flashcards
Whats a mission statement?
Its overall purpose of main corporate aims
Makes stakeholders aware of what the business does and why
Encourages employees to work towards the aims
Whats the purpose of a mission statement?
Encourages the business to work towards common goals and makes it more likely for the business to meet its aims
Why should a mission statement be accurate?
It’s bad practice to make the mission statement unattainable
Ruins the reputation of the business
Unethical
Corporate objectives
The goals of the business as a whole
Depends on the business size
Helps a business survive to grow bigger and diversify its product range
Departmental objectives
‘Functional objectives’
Objectives of each department
More detailed and specific
Contributes towards a corporate objective
SMART objectives
Specific
Measureable
Acheiveable
Realistic
Timely
Specific (SMART)
Making objectives more specific makes them more achievable
Measurable (SMART)
If the objective isn’t measurable, the business won’t know if they’ve achieved them or not
Achievable (SMART)
Make sure you can reach your goal but its also ok to challenge the business
Realistic (SMART)
Can’t be too ambitious
Sensible
Impossible goals can demotivate staff
Timely (SMART)
Setting a specific time frame
If there’s no time limit, it won’t be seen as urgent so they may not worry about achieving it
Uses of mission statements
Focus; Helps to focus and involve the business
Profitability; Helps motivate employees and make more capital
Identity; Helps create an identity in a competitive market
Limitations of mission statements
- Can be unrealistic
- Can be a waste of time and resources
- Can lead to conflicts
- Can be ambiguous
- Can become obsolete if the business develops but the mission statement stays the same
