3.1.1 Corporate Objectives

Question 1

Spec Points

Answer 1

a) Development of corporate objectives from mission
statement/corporate aims

b) Critical appraisal of mission statements/corporate aims

Question 2

What is a mission statement

Answer 2

• Qualitative description about the organisation - So that stakeholders knows the firms intention

Question 3

What are corporate objectives ?

Answer 3

• A realistic goal set by company , that often influences internal strategic decisions.

Question 4

What is the relationship between a mission statement and a corporate?

Answer 4

• It is often driven by the mission statement

Question 5

What do corporate objectives define?

Answer 5

• The overall business objectives such as Profit Maximisation, Growth, Sales Maximisation and social objectives

Question 6

What are functional objectives?

Answer 6

• Often known as departmental objectives
• Define objectives of each department
• Is driven by the corporate objective and is more detail

Question 7

What are the benefits of Mission Statements

Answer 7

• Provides a clear sense of business purpose and ensures that decisions made are aligned with mission statement
• Customers may agree and buy into the mission statement, giving it a competitive advantage
• Helps ensure everyone in the firm is working towards the same purpose

Question 8

What are the limitations of mission statements

Answer 8

-They may be created simply to make the business look good, when in reality they lack actual actual substance
- They are often too vague and merely generic
- May have been made to keep public relations in order rather than acting as a focus for business strategy.