Theme 3 Topic 1 - Corporate Objectives

Question 1

Define Mission Statement

Answer 1

A qualitative statement of why the business exists i.e. its overall purpose

Question 2

What are two advantages of mission statements?

Answer 2

Gives a sense of purpose or belonging to staff, Helps make decision making easier

Question 3

What are two criticisms of mission statements?

Answer 3

Might just be used as a PR gimmick rather than serve a purpose, Many employees pay little attention to them or are unaware of them

Question 4

Define Aims

Answer 4

Long term intentions which allow objectives to be set, normally qualitative statements

Question 5

Define Corporate Strategy

Answer 5

A medium to long term plan of how the firm will achieve its corporate objectives

Question 6

Define Corporate Objectives

Answer 6

Specific and measurable targets set out by the company

Question 7

What order is the hierarchy of objective setting?

Answer 7

1) Mission Statement, 2) Corporate Aims, 3) Corporate Objectives, 4) Functional Objectives

Question 8

What are four functional areas?

Answer 8

Marketing, Operations, Human Resources, Finance

Question 9

What does SMART stand for?

Answer 9

Specific, Measurable, Achievable, Realistic, Timebound