CORPORATE OBJECTIVES Flashcards
What is a Mission Statement?
This is a statement written by the business, describing its purpose and objectives, designed to cover its present operations.
What is an Aim?
This is what the business wants to achieve in the long term.
What are the reasons for creating a Mission Statement?
- To make a commitment to its customers.
- To bring the company’s workforce together with a shared purpose.
- To help build a strong corporate culture by emphasizing on the company’s values.
What are Corporate Objectives?
These are objectives set by senior managers and directors of a company. These objectives should focus on the desired performance and results of the business overtime.
State some Corporate Objectives set by a business
- Market share
- Profit levels
- Creation of new products or processes
- Resource management & E. O. S
- Management of people and Ethical behaviours
What is a SMART Objective?
- Specific
- Mesaurable
- Agreed
- Realistic
- Time specific
What are Departmental/Functional Objectives?
These are objectives that can be set for individual departments such as Finance, HR, Marketing & operations to support the overall corporate objectives and aims of a company.
State the order of the Objectives Hierachy
- Aims
- Mission Statement
3. Corporate Objectives- Departmental/Functional Objectives
What are the main Objectives for Small businesses?
- Break Even
- Survival
- Increase sales and profits
- Improve liquidity
- Customer Satisfaction
What are the main Objectives for Large businesses?
The main objectives for large businesses are mostly financial as they have many stakeholders to satisfy.
How would an unrealistic Mission Statement affect a business?
- Employees would be demotivated.
- Waste of time and can result in diseconomies of scale.
- Customers would lose faith and be left disappointed, losing repeat purchases.
