Corporate Objectives

Question 1

Purpose of corporate objectives

Answer 1

Provide strategic focus
• Measure performance of the firm as a whole
• Inform decision-making (which involves strategic choice!)
• Set the scene for more detailed functional objectives

Question 2

Market corporate objectives

Answer 2

Market share, customer satisfaction, product range

Question 3

Innovation corporate objectives

Answer 3

New products, better processes, using technology

Question 4

Productivity corporate objectives

Answer 4

Optimum use of resources, focus on core activities

Question 5

Physical & financial resources corporate objectives

Answer 5

Factories, business locations, finance, supplies

Question 6

Profitability corporate objectives

Answer 6

Level of profit, rates of return on investment

Question 7

Management corporate objectives

Answer 7

Management structure; promotion & development

Question 8

Employees corporate objectives

Answer 8

Organisational structure; employee relations

Question 9

Public responsibility corporate objectives

Answer 9

Compliance with laws; social and ethical behaviour

Question 10

Corporate objectives

Answer 10

Corporate objectives are those that relate to the business as a whole

Question 11

Functional Objectives

Answer 11

Set for each key business function and are designed to ensure that the corporate objectives are achieved

Question 12

Corporate Objective= increase sales,

Example Functional Objective

Answer 12

Successfully launch five new products in the next two years (marketing)

Question 13

Corporate Objective= reduce costs,

Example Functional Objective

Answer 13

Increase factory productivity by 10% (operations)

Question 14

Corporate Objective= increase cash flow,

Example Functional Objective

Answer 14

Reduce the average time taken by customers to pay invoices from 75 to 60 days (finance)

Question 15

Corporate Objective= improve customer satisfaction,

Example Functional Objective

Answer 15

Achieve a 95% level of high customer service (people)

Question 16

Key Internal Influences on Corporate Objectives & Decisions (7)

Answer 16

Business Ownership, attitude to profit, ethical stance, organisational culture, leadership, strategic position and resources (What options & choices does the business realistically have based on its existing market position & resources?), stakeholder influence

Question 17

Key External Influences on Corporate Objectives & Decisions

Answer 17

Short-Termism, economic environment, political/legal environment, competitors, social&technological change