Topic 3

Question 1

What are objectives?

Answer 1

They are statements of specific outcomes that’s are to be achieved.

Question 2

What are corporate objectives?

Answer 2

Corporate objectives are objectives that relate to a business as a whole.
They are influenced by vision, mission and aims of a business.

Question 3

Main purpose of CO:

Answer 3

Provide strategic focus
Measure performance of the firm as a whole
Inform decision-making (which involves strategic choice!)
Set the scene for more detailed functional objectives

Question 4

Hierarchy of business objectives.

Answer 4

1.Mission statements (a memorable and inspiring statement, which outlines abusiness’ main intent and sets out their primary objectives and general aims)
2. Corporate objectives (set out to help a firm achieve its mission statement andaimed at satisfying shareholders, which could flow from the mission statement)
3. Department / functional objectives (each department sets their own objectives,which should flow from the corporate objectives)