3.1.1. Corporate Objectives

Question 1

Corporate objective

Answer 1

Targets set for the whole firm to reach in a given time period. Specific performance goal set by senior management for business to achieve.

Question 2

Development of corporate objectives from corporate aims

Answer 2

An aim provides general sense of what needs to be achieved. Gives sense of purpose and drive that the aim can bring to day to day tasks. Types of corporate aims include:
-Growth
-Maximising profits
-Entering new markets
-Surviving the 1st two yrs of being in business
-Improving the communities in which they operate

Should allow decisions to be made quickly as no need for lengthy consultation with senior management.
These aims can help explain unethical business behaviour. If employees knew businesses aim is to maximise profits they may persuade customers to buy certain product they don’t want.

Question 3

Development of corporate objectives from mission statements

Answer 3

Mission statement is the reason why a business exists. It helps remind staff what they are aiming to achieve on behalf of their employer.
If employees can be convinced to “buy into” business’s mission m, they’re likely to find sufficient motivation from trying to achieve this purpose without the need for extra motivational techniques

Question 4

Influences on business mission

Answer 4

-A strong sense of mission or purpose can create a strong +ve culture, while a lack of purpose may create culture characterised by uncertainty and contradiction.

Major factors affecting sense of mission are:
-Purpose:why business exists
-Values
-Standards and begaviots

Question 5

Limitation of mission statements

Answer 5

-If there is no shared purpose to focus on, a collection of words won’t create that purpose for employees.