Corporate Objectives (3.1.1) Flashcards
What do aims and objectives do for a business?
Serve as a guide for the businesses overall strategy and direction, helping to focus efforts and resources toward a common purpose
What are Corporate Objectives?
The long-run outcome the business hopes to achieve. The overall purpose of the business. They are the specific performance goals set by senior management for business to achieve over time.
What are Corporate Objectives often shown as?
Mission Statements
What are things that are essential to making a mission statement good?
-The purpose must be clear
-It must capture stakeholders not just customers
-It must be personal
-It should make you want to invest in the business
Who are the Corporate objectives normally set by? Why?
Senior Management to help the business achieve its aims
What does SMART stand for?
S-Specific
M-Measurable
A-Attainable
R-Realistic
T-Time-bound
What are SMART objectives used for?
They are objectives which are used to establish a criteria for effective goal-setting and objective development. Ensure goals are well-defined, quantifiable, realistic, aligned with business priorities, and have a clear deadline.
What does the S of SMART mean?
Specific. Does the objective detail exactly what needs to be done?
What does the M of SMART mean?
Measurable. Is the goal trackable? Can it be measured?
What does the A of SMART mean?
Attainable. Is the goal challenging but possible?
What does the R of SMART mean?
Realistic. Is the goal realistic?
What does the T of SMART mean?
Time-Bound. Does the goal have a deadline? Is the time period clearly stated?
What are the benefits of Corporate Objectives?
-Provides a sense of direction
-Can review the performance of the business
-Can review the performance of employees
-Source of Motivation to achieve goals
What are the limitations of Corporate Objectives?
-Depends if objectives are SMART
-Depends on senior management experience
-Depends on Market Forces
-Depends on Communication
