3.7.1 - Mission Corporate Objectives & Strategy

Question 1

What is a mission statement?

Answer 1

Sets out a business’s overall purpose.

Question 2

What does a mission statement focus on?

Answer 2

• The organisations values
• Non-financial goals
• Benefits to stakeholders
• How consumers are to be satisfied.

Question 3

Who are the key audiences for mission statements?

Answer 3

• Employees
• Investors
• Customers
• Owners & Directors
• Society

Question 4

What makes a good mission statement?

Answer 4

• A clear sense of business purpose
• Easy to understand and remember
• Excites,inspires,motivates & guides.

Question 5

What is IKEAS mission statement?

Answer 5

“our visions is to create a better everyday life for the many people”

Question 6

What are criticisms of mission statements?

Answer 6

• Vague and general
• Not always supported by actions
• States the obvious

Question 7

What are objectives?

Answer 7

Specific & measurable targets to coordinate the business.

Question 8

What are business objectives?

Answer 8

• Specific intended outcomes of business strategy

- Targets which the business adopts in order to achieve its aims.

Question 9

What are business’s objectives set to do?

Answer 9

• Provide quantifiable steps to achieve aims
• Clarify directions of the business
• Measure success
• Provide targets to motivate and reward employees
• Influence potential investors/lenders.

Question 10

What factors influence business objectives?

Answer 10

• Size
• Sector: Public organisations driven by meeting customer needs. Private sector for profit.
• Market
• Ownership
• Consumer satisfaction

Question 11

What are corporate objectives?

Answer 11

Those that relate to the business as a whole. Will influence the functional objectives.

Question 12

Where do corporate objectives fit in?

Answer 12

• Mission: Overall purpose of the business
• Vision: The overall aspiration of the business
• Aims & Goals: Statements of what business intends to achieve
• Corporate Objectives: More precise and detailed statements of aims/goals.

Question 13

What are the purposes of corporate objectives?

Answer 13

• Provide strategic focus
• Measures business performance
• Informs decision-making
• Set the scene for more detailed functional objectives.

Question 14

What are the key areas for corporate objectives?

Answer 14

• Market
• Innovation
• Productivity
• Profitability
• Management

Question 15

What are functional objectives?

Answer 15

Designed to ensure that the corporate objectives are achieved.

Question 16

How might functional objectives support corporate objectives?

Answer 16

• Increase sales
• Reduce costs
• Increase cash flow
• Improve customer satisfaction

Question 17

What are examples of financial & non-financial objectives?

Answer 17

Financial:profitiblity,market share, growth, shareholder value, survival
Non-financial: brand recognition,sustainability,customer satisfaction.

Question 18

How can objectives be analysed?

Answer 18

SMART
Specific
Measurable 
Achievable
Relevant 
Time bound