3.1.1 Corporate objectives

Question 1

strategies are

Answer 1

-Medium to long term plans made by a business to meet its corporate objectives
Made by senior managers
-Require an investment of resources e.g. time and money
-Once made are difficult to reverse

Question 2

a mission is

Answer 2

A mission is the overall reason for the business’ existence.

-It is the main purpose of a business and therefore determines the business’ strategic position.

Question 3

a mission statement is

Answer 3

• A mission statement is a written statement that states the purpose of an organisation.
• A mission statement provides a common focus for everyone within an organisation and hence a common sense of direction.

Question 4

development of corporate objectives

Answer 4

Mission Statement
The overall reason for the business’ existence

Corporate Aims
The long term targets and plans to fulfil the mission statement

Corporate Objectives
The medium to long term quantifiable targets to fulfil the mission statement
Corporate Strategy
The actions to be taken by the business to achieve its objectives

Question 5

describe critical appraisal

Answer 5

Considering the strengths and weaknesses of mission statements and corporate aims
-Assessing the value :
Are they reflected in all decisions?
Are objectives and decisions clearly informed?
Who is it aimed at i.e. the target audience?
Is it still appropriate or has the business evolved since it was written?
Is it easy to access, read and understand?
Paper exercise or underpinning everything the business does?