Corporate objectives

Question 1

Corporate objectives

Answer 1

Objectives that relate to the business as a whole, set by senior managers and directors of a company.

Question 2

Mission statements

Answer 2

States the business’s main purpose- may reflect its goals and values.

Main elements:

Purpose- outlines why the business exists

Values- such as integrity, innovation, sustainability, quality

Standards and behaviour- such as ethical behaviour

Strategy- outlines how the business intends to achieve its main objective

Question 3

SMART

Answer 3

To help a business reach their aim, corporate objectives must be:

Specific- clearly states what the business aims to achieve

Measurable- has a quantifiable element so that the success of the objective can be easily measured

Agreed- everyone involved in achieving the objective agrees and understands it, without this there’ll be lack of motivation and commitment to the objective

Realistic- ensures the objective can be met given the resources available and current market conditions, unrealistic ones will be unachievable and ppl will give up

Time specific- states time frame required to achieve the objective, deadlines ensure urgency

Question 4

Critical appraisal of mission statements

Answer 4

Purpose- to set out the overall aim of the business and long-term objectives of both the internal and external environment of the business

Intended audience- stakeholders

Uses:
To track progress- ensures the business is heading toward the intended direction by comparing overall objective to current position

Public relations- informs the public and other stakeholders on the business’s aims

Strategic planning- as it outlines their aims, its a good starting point in helping the business set corporate objectives. Ensures that corporate objectives match the overall aims of the business

Limitations:
They are not always supported by the business’s actions

Too vague- often lacks detail and doesn’t explain how the goal will be met

Viewed as public relation stunt- often viewed as an attempt to enhance public relations rather than as a tool to help the business itself. Viewed cynically