Corporate objectives 3.1.1

Question 1

What are corporate objectives?

Answer 1

The goals or targets of the whole organisation (based on its mission or aims)

Question 2

What is a mission statement?

Answer 2

A written statement that States the purpose of an organisation

It provides a common focus for everyone within the organisation

Question 3

What do mission statements tend to have in them?

Answer 3

Platitude

Question 4

Who are mission statements aimed at?

Answer 4

• Employees
• Investors
• Customers
• Society

Question 5

What is the hierarchy of the objectives?

Answer 5

• Aim
• Mission
• Corporate objectives
• Functional objectives
• Business unit/ individual targets

Question 6

What is meant by corporate Aims?

Answer 6

Long term targets and plans to fulfil the mission statement.

Question 7

What is a corporate strategy?

Answer 7

Actions to be taken by the business to achieve its objectives.

Question 8

What is meant by critical appraisal?

Answer 8

Considering the strengths and weaknesses of mission statement and corporate aims.

Question 9

What makes a good mission statement?

Answer 9

• A clear sense of business purpose.
• Excites, inspires, motivates and guides
• Easy to understand and remember
• Differentiates business from competitors
• For all stakeholders - not just shareholders and managers

Question 10

What are the criticisms of mission statements?

Answer 10

• Not always supported by actions of the business.
• Often too vague and general.
• Often merely statements and general.
• Are they just PR?
• Sometimes regarded cynically by staff.
• To be effective, everyone in the business has to “buy in”.