3.1.1 - Corporate Objectives Flashcards
What is a mission statement?
A mission statement communicates the purpose of a business and why it exists
What is the order of the components of the Hierachy?
- Aims
- Mission Statement
- Corporate Objectives
- Functional Objectives
What is an aim?
Long term goals of a business (Overall vision)
What are corporate objectives?
Specific, realistic and measurable goals which an organisation plans to achieve within a given period of time.
- Derived from firm’s aim
- Based on innvoation/growth etc
What factors impact corporate objectives?
- Economic conditions
- Natural disasters
- Competitors
- Technological change
- Internal factors
What are functional objectives?
Relate to the goals of departments/functions (marketing etc) and derived from and to aid corporate objectives
What does SMART stand for and what objectives should meet these standards?
S - Specific
M - Measurable
A - Agreed
R - Realistic
T - Time bound
Corporate and functional objectives should meet these