corporate objectives

Question 1

what is a mission statement?

Answer 1

a statement written by the business, describing its purpose, objectives, goals and values

Question 2

why is it good to have a mission statement?

Answer 2

when all else fails, a good mission statement would clarify the decision a business should take by reminding the owners and directors of the reason why the business exists

Question 3

give an example of a good mission statement

Answer 3

Tesla: ‘to accelerate the world’s transition to sustainable energy

Question 4

why would a business form a mission statement?

Answer 4

• to bring the workforce together with a shared purpose
• to create a expectation for consumers

Question 5

what are corporate objectives?

Answer 5

objectives set mainly focusing on desired performance and results of the business over time. they can include goals such as :
market share, profit levels, management of people and ethical behaviours

Question 6

what is used to ensure a corporate objective is good?

Answer 6

SMART

Question 7

what is SMART?

Answer 7

Specific: objectives are set out clearly and are based on what the business wants to achieve

Measurable: evidence to demonstrate whether or not the objectives have actually been achieved

Agreed: everyone is responsible for achieving the objective

Realistic: the objective can be met

Time specific: stated time frame for the objectives to be achieved

Question 8

critical appraisal of mission statements and corporate aims

Answer 8

mission statements must be constantly assessed to ensure they are still relevant to the business

if a business does not follow through with their mission statement, customers and employees will begin to lose faith in the business

for example, if the business’ mission statement includes respect and integrity, but there has been reported fraud, there would be a clear problem as they’re not following through with the mission statement