3.1.1 Corporate Objectives Flashcards
Why are aims and objectives important
serve as a guide for the businesses’ overall strategy and direction, helping to focus efforts and resources toward a common purpose
What is the hierarchy of objectives
What is a businesses ‘aim’
-overall long-term vision, describes the reason for existing
What is a businesses ‘mission statement’ and what does it do
An expression of a business’s aim in inspiring, short snappy ways + outlines core values
-it informs the development of corporate and functional objectives
What is a corporate objective
-The SMART performance goals set by senior management for the business to achieve over time
-derived from aim+ mission statement
What is SMART
specific, measurable, agreeable, realistic, time measured
What is an example of a corporate objective (3)
-achieving specified levels of market share , profit
-sales growth
-new product/market development
What is a functional objective
Day to day goals
Aid corporate objective e.g market on tiktok to achieve corporate aim of more sales
Should functional objectives also be SMART?
Yes, arguably more than corporate ones
Why do businesses need to keep revising the aims or mission statement
To make sure it reflects the current corporate vision
Why are mission statements sometimes criticised
Sometimes seen as performative to aid PR
What does a business need to consider when deciding a corporate aim or mission statement?
- The short- to medium-term strategies adopted support them
2.The aim and objectives are realistic and achievable in the current trading environment - The mission statement effectively communicates the business aim with stakeholders
Why else is revising the business aim good?
- Involve a variety of stakeholders to determine the new direction
- SWOT analysis can be acknowledged
- Generate positive publicity e.g apples focusing on sustainability
