3.1.1 Corporate objectives

Question 1

What are the 4 elements of the business objectives hierarchy?

Answer 1

Aims
Mission statements
Corporate objectives
Functional objectives

Question 2

What is a mission statement?

Answer 2

Brief statement, written by a business, describing their businesses purpose and objectives

Question 3

What is a corporate objective and what must they be?

Answer 3

Objectives set by senior managers and directors for a company - must be SMART

Question 4

What are functional objects?

Answer 4

Set the day-to-day goals e.g. HR, finance

Question 5

4 positives for to having an effective mission statement

Answer 5

-Communicates key values
-Specific to the business - make it distinctive
-Provides a common mission supported by senior management
-Excites, inspires, motivates + guides

Question 6

4 criticisms of mission statements

Answer 6

-Not always supported by actions of the business
-Often too vague and general
-Often merely statements of the obvious
-Often seen as a PR excercise

Question 7

List 5 stakeholders (have an interest in the business)

Answer 7

Lenders
Managers and directors
Employees
Suppliers
Customers