3.1.1 Corporate objectives

Question 1

What are corporate objectives?

1

Answer 1

• Targets set for whole firm to reach in given time period

Question 2

What is a corporate aim?

1

Answer 2

• Generalised statement of where a firm is heading

Question 3

What are examples of corporate aims?

4

Answer 3

• Growth
• Maximising prof
• Entering new markets
• Improving local communities

Question 4

How can corporate aims help explain unethical business behaviour?
1

Answer 4

• Employee who knows firms main aim is to max profit, persuade customer to buy product they don’t need

Question 5

What is a business mission?

1

Answer 5

• Underpinning purpose behind existence of a business

Question 6

What is a mission statement?

1

Answer 6

• Catchy summary of reason why business exists

Question 7

What are the factors influencing a business mission?

3

Answer 7

• Purpose
• Values
• Standards/behaviours (managers)

Question 8

What are the benefits of corporate objectives?

3

Answer 8

• Job satisfaction, staff know how their jobs help firm achieve (^staff retention)
• ^Decision making, no lengthy consultations (direction there)
• > Management (supervision) needed (>costs)

Question 9

What are the drawbacks of corporate objectives?

3

Answer 9

• Trade-off between obj, satisfying 1 may disregard another
• Too simplistic = non measurable (ambiguous)
• May cut labour force, >job security/motivation

Question 10

What are the benefits of a mission?

3

Answer 10

• ^Motivation to achieve, w/out motivational techs
• Poor pay/conditions may be possible due to how driven employees are (NHS)
• > Extra management, no explaining needed of roles