3.1.1. Corporate Objectives - LESSON DONE ON THIS

Question 1

Define Mission Statement

Answer 1

is a Qualitative Statment of an Organisations Aims

Question 2

State the Hierarchy of Business of Objectives

Answer 2

Aims
v
Mission Statement
v
Corporate Objectives
v
Functional Objectives (Finance, Marketing, Operations, People)

Question 3

Explain a Mission Statement

Answer 3

• a Short Way of a Business Expressing Their Main Intenet
• should Be Memorable and Inspiring, Sets out the Purpose and Primary Objectives of a Business in the Present

Question 4

What are Corporate Objectives

Answer 4

• Objectives Set by Senior Managers and Directors for a Company
• Should Flow From the Mission Statement and Corporate Vision
• Aimed at Satisyfying the Shareholders so may be Related to Profit or Dividends

Question 5

Corporate Objectives must be SMART - Outline these Criteria

Answer 5

• SPECIFIC - Clearly Sets Out What business Aims to Achieve
• MEASUREABLE - means the Achievement can be Checked
• ACHIEVABLE - you can Achieve your Target but you May Need to Stretch Yourself
• REALISTIC - Objective Can be Met Within the Resources Available and the Prevailing Market Conditions
• TIME - Setting a Date for Achievement or Review

Question 6

Explain Department Objectives

Answer 6

• Each Department will Set their Own Objectives which should Flow the Corporate Objectives
• this Will Help the Business to Achieve its Corporate Objectives of More Dividends for the Shareholders

Question 7

What is the Purpose of Mission Statement

Answer 7

• can Define the Essence or Purpose of the Business in Just a Few Sentences
• It’s Purpose of the Business that’s Key in the Statement

Question 8

What are 3 Uses of Mission Statments

Answer 8

• FOCUS - helps to Focus and Involve All Employees in the Business
• PROFITABILITY - Helps to Motivate Employees to Become More Efficient Which Could have an Impact on Profitability
• IDENTITY - Helps to Create an Identity in a Competitive Market

Question 9

What are Limitations of Mission Statements

Answer 9

• can be Unrealistic and Over Optimistic
• can be a Waste of Management Time and Resources
• can Lead to Conflicts and Inconsistencies when Not Properly Written
• can Become Obsolete as the Business Develops but the Mission Statement Remains the Same

Question 10

What are Stakeholder Perspectives on Mission Statements - Owners, Employees, Customers

Answer 10

• OWNERS - want to Maximise Shareholder Value of the Business
• EMPLOYEES - Look for Motivational Statements that Make them Feel Proud to Work for that Company
• CUSTOMERS - look to See Core Business Pricniple that are Ethical