3.1.1 Corporate Objectives

Question 1

Mission statement

Answer 1

A qualitative statement of the businesses aims.

Question 2

Features of a mission statement

Answer 2

• Over-riding goal.
• Reason for business’s existence.
• Vision for the future.
• Excites, inspires, motivates and guides.
• Differentiates business from competitors.
• Easy to remember.
• For all stake holders.

Question 3

Aim

Answer 3

A long term plan from which business objectives are derived.

Question 4

Objectives

Answer 4

Targets which the business adopts in order to achieve its overall corporate aims.

Question 5

Examples of objectives

Answer 5

Survival, profit maximisation, sales maximisation, employee welfare, customer satisfaction, cost efficiency, market share, social objectives.

Question 6

Functional objective

Answer 6

The day to day goals of functions or departments within the business derived from corporate objectives.

Question 7

SMART objectives

Answer 7

Specific, measurable, achievable, relevant, time bound.

Question 8

Common criticisms of mission statements

Answer 8

• Not always supported by business actions.
• Often too vague and general.
• Often merely statements of the obvious.
• Just for PR.
• To be effective, everyone in the business has to buy in.
• Sometimes regarded cynically by staff.

Question 9

Factors influencing whether or not objectives are fulfilled?

Answer 9

• Age of the business.
• State of the economy.
• Competition.
• Market conditions.
• Legislation.
• Social attitudes.