3.1.1-Corporate Objectives

Question 1

Mission Statement

Answer 1

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

Question 2

Hierarchy of Business Objectives

Answer 2

Mission statement and general aims
|
V
Corporate Objectives
|
V
Department Objectives

Question 3

Mission Statement

Answer 3

A mission statement is a short way of a business expressing their main intent

Question 4

Criticism of a Mission Statement

Answer 4

Seen as more of a public relations tool by critics

Question 5

Corporate Objectives

Answer 5

• Corporate objectives should flow from the mission statement and corporate vision
• Usually set by senior management for the whole company
• Aimed at satisfying the shareholders so may be related to profit or dividends
• Objectives need to be SMART

Question 6

SMART

Answer 6

Specific; This means there must be a clear definition, often including a number
Measurable; This means the achievement can be checked
Achievable; This means you can achieve your target but you may need to stretch yourself
Realistic; This means that the target should sensible so that you can achieve it
• Time-related; this means setting a date for achievement or review

Question 7

Department Objectives

Answer 7

In most businesses they divide up the work into departments or functions;
-Sales
-Marketing
-Human resources
-Operations
-finance

Question 8

Department Objectives

Answer 8

In most businesses they divide up the work into departments or functions;
-Sales
-Marketing
-Human resources
-Operations
-finance

Question 9

Uses Of Mission Statements

Answer 9

A. Focus; helps to focus and involve all employees in the business
B. Profitability; helps to motivate employees to become more efficient which could have an impact on profitability
C. Identity; helps to create an identity in a competitive marketplace

Question 10

Limitations of Mission Statements

Answer 10

A. Can be unrealistic and over optimistic
B. Can be a waste of management time and resources
C. Can lead to conflicts and inconsistencies when not properly written
D. Can be ambiguous
E. Can become obsolete as the business develops but the mission statement remains the same (perhaps due to a merger or change of product, iPod to iPhone for example)

Question 11

Limitations of Mission Statements

Answer 11

A. Can be unrealistic and over optimistic
B. Can be a waste of management time and resources
C. Can lead to conflicts and inconsistencies when not properly written
D. Can be ambiguous
E. Can become obsolete as the business develops but the mission statement remains the same (perhaps due to a merger or change of product, iPod to iPhone for example)

Question 12

Stakeholder Perspectives : Owners

Answer 12

Owners will want to maximise shareholder value of the
business

Question 13

Stakeholder Perspectives : Owners

Answer 13

Owners will want to maximise shareholder value of the
business

Question 14

Stakeholder Perspectives: Managers

Answer 14

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

Question 15

Stakeholder Perspectives: Employees

Answer 15

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

Question 16

Stakeholder Perspectives: Pressure Groups

Answer 16

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

Question 17

Stakeholder Perspectives: Customers

Answer 17

Customers will look to see core business principals that are ethical

Question 18

Stakeholder Perspectives: Competitors

Answer 18

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

Question 19

Uses of Mission Statements

Answer 19

A. Focus; helps to focus and involve all employees in the business
B. Profitability; helps to motivate employees to become more efficient which could have an impact on profitability
C. Identity; helps to create an identity in a competitive marketplace

Question 20

Limitations of mission statements

Answer 20

A. Can be unrealistic and over optimistic
B. Can be a waste of management time and resources
C. Can lead to conflicts and inconsistencies when not properly written
D. Can be ambiguous
E. Can become obsolete as the business develops but the mission statement remains the same (perhaps due to a merger or change of product, iPod to iPhone for example)