Corporate Objectives (3.1.1)

Question 1

What are Corporate Objectives?

Answer 1

The long-run outcome the business hopes to achieve. The overall purpose of the business.

Question 2

What are Corporate Objectives often shown as?

Answer 2

Mission Statements

Question 3

What are things that are essential to making a mission statement good?

Answer 3

-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

Question 4

Who are the Corporate objectives normally set by? Why?

Answer 4

Senior Management to help the business achieve its aims

Question 5

What does SMART stand for?

Answer 5

S-Specific
M-Measurable
A-Attainable
R-Realistic
T-Time-bound

Question 6

What are SMART objectives used for?

Answer 6

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.

Question 7

What does the S of SMART mean?

Answer 7

Specific. Does the objective detail exactly what needs to be done?

Question 8

What does the M of SMART mean?

Answer 8

Measurable. Is the goal trackable? Can it be measured?

Question 9

What does the A of SMART mean?

Answer 9

Attainable. Is the goal challenging but possible?

Question 10

What does the R of SMART mean?

Answer 10

Realistic. Is the goal realistic?

Question 11

What does the T of SMART mean?

Answer 11

Time-Bound. Does the goal have a deadline? Is the time period clearly stated?

Question 12

What are the benefits of Corporate Objectives?

Answer 12

-Provides a sense of direction
-Can review the performance of the business
-Can review the performance of employees
-Source of Motivation to achieve goals

Question 13

What are the limitations of Corporate Objectives?

Answer 13

-Depends if objectives are SMART
-Depends on senior management experience
-Depends on Market Forces
-Depends on Communication