mission and corporate Flashcards
What is a mission statement?
An organisation’s aim or long term purpose.
What are corporate objectives?
Goals of the whole organisation.
What is an example of a mission statement?
Ikea - our vision is create a better everyday for many people.
What is a corporate vision?
What an organisation wants to become.
Why are mission statements important to stakeholders?
Provides a central purpose and co-ordinates workers to work towards a target.
Why are mission statements important for strategy?
Workers can focus on a target and how the business will get there.
Why is a mission statement important for corporate objectives?
It helps organisations develop measurable goals and can gauge success of its strategy.
Why are mission statements often criticised?
They are not often supported by the actions of the business, often too vague and sometimes a PR stunt.
What are some examples of corporate objectives?
Profit maximisation, survival, Market Capitalisation and Sustainability.
How does the type of ownership influence corporate objectives?
PLC - B.O.D, make money, short-term,LTD- long term success,Partnership and sole trader- survival, they are small
How does the power of stakeholders influence corporate objectives?
Key players will have the greatest influence, if this is shareholders, profits are the most important, if this is customers then price is the most important.
How do ethics influence corporate objectives?
Companies that value ethics with aim to be sustainable, companies that don’t may prioritise profits.
How does the availability of resources influence corporate objectives?
Organisations with more capital may have bigger scale objectives with more ambition, less resources means a smaller scale.
How does the size of a business influence its mission statement?
Larger businesses may have larger scale mission statements e.g., globally where as smaller business may work on a smaller scale or might not even have one.
How does the range of activities a business has influence its mission statements?
The wider the range, the more vague.
