3.1.1 Corporate objectives

Question 1

what are corporate objectives?

Answer 1

a quantifiable statement of a business’ goal which should include measurable targets

Question 2

what is a mission statement?

Answer 2

a short way of a business expressing their main intent, vision or purpose

Question 3

what are mission statements used for?

Answer 3

-differentiating the business from competitors
-satisfying shareholders

Question 4

what is corporate strategy?

Answer 4

a course or route that a business has chosen to follow in order to achieve its corporate objectives

Question 5

what do corporate objectives lead to?

Answer 5

corporate strategy

Question 6

what are objectives?

Answer 6

statements of specific outcomes that are to be achieved

Question 7

what are the use of corporate objectives?

Answer 7

-provides a focus (internal stakeholders have direction)
-provides an identity
-profitability

Question 8

what are the limitations of mission statements?

Answer 8

-can become obsolete as a business develops
-can be unrealistic as a business develops
-can be seen as a PR tool (however if used well, a business will gain a good brand image)