relationship between missions and objectives

Question 1

what is a mission statement

Answer 1

A qualitative statement of an organisation’s aims which describes the general purpose of the organisation.

Question 2

what are aims

Answer 2

Aims are long-term plans from which its corporate objectives are derived.
Tend to be qualitative rather than quantitative

Question 3

what are objectives

Answer 3

medium to long-term targets established to coordinate the business

Question 4

what is a smart objective

Answer 4

Specific
Measurable
Agreed
Realistic
Time bound

Question 5

what are common business objectives

Answer 5

• survival
• break-even
• sales growth and maximisation
• sales growth and/or maximisation
• growth and expansion
• reducing risk
• Diversification
• Improving cash flow and liquidity
• Increasing market share
• Increasing shareholder value
• Maximising customer satisfaction
• Social and ethical objectives
• Staff retention, engagement, motivation and morale

Question 6

what is Diversification

Answer 6

Establishing a USP, launching new products in new markets

Question 7

ways to reduce risk

Answer 7

By releasing more products or operating in more countries

Question 8

why set objectives

Answer 8

• clear set of guidelines
• co-ordinate business activity
• motivate workers
• emphasise what is important
• influence the actions of other workers

Question 9

examples of common business objectives

Answer 9

• survival
• break even
• sales growth and maximisation
• profit growth and maximisation
• growth and expansion
• reducing risk
• diversification
• improving cash flow and liquidity
• increasing market share
• maximising shareholder satisfaction
• social and ethical objectives
• staff retention, engagement, motivation and morale

Question 10

possible issues with mission statements

Answer 10

• lack of support – not always supported by actions of the business
• vagueness – often too general
• obviousness
• PR exercise – often seen as press release