3.1.1 Corporate Objectives

Question 1

What is a mission statement?

Answer 1

it is the over-riding goal, the qualitative reason for a businesses existence and its vision. Including their ethical stance.

Question 2

Why do businesses write mission statements?

Answer 2

1) To motivate employees

2) Convince customers and suppliers to work with the business

Question 3

What are some common issues with a mission statement?

Answer 3

• false promises
• not representative of the businesses actions
• not measurable
• not realistic
• too vague and general
• Has to be adopted by all staff

Question 4

What are the stages of the hierarchy of objectives?

Answer 4

Aim
Mission statement
Corporate objectives
Functional objectives
Unit/Individual targets.

Question 5

What do objectives need to be?

Answer 5

SMART (Specific/Measurable/Achievable/Realistic/Time-bound)

Question 6

What are the positives of a mission statement?

Answer 6

• provides direction and sense of unity of staff
• help in decision-making
• creates clarity
• Helps customers understand business