3.1.1 Corporate Objectives

Question 1

What are corporate objectives?

Answer 1

Objectives that relate to the business as a whole

Question 2

What is a mission statement?

Answer 2

A business’ overall purpose or main corporate aims

Question 3

Advantages of mission statements

Answer 3

• gives staff a shared purpose
• increases employee motivation

Question 4

Disadvantages of mission statements

Answer 4

• business’ don’t have to prove that what’s in their statement is accurate, so they could lie.
• doesn’t go into detail about how the mission will be achieved

Question 5

What is the hierarchy of objectives?

Answer 5

1. Mission Statement
2. Corporate Objectives
3. Department Objectives

Question 6

What do corporate objectives depend on?

Answer 6

The size of the business. A new business may focus on survival, while a big international company may want to grow and diversify their products.

Question 7

Explain departmental objectives

Answer 7

The objectives of each department. They are more detailed and specific than corporate objectives.

Question 8

Why do business’ set objectives?

Answer 8

• So that everyone is working towards the same goal, which improves coordination between departments.
• Motivates employees.
• Helpful with decision making as it’s clear what the business is trying to achieve overall.

Question 9

What is the link between objectives and the mission statement?

Answer 9

Any objectives set should be aligned with the mission statement, otherwise the business can lose credibility with its stakeholders.

Question 10

What should all objectives be?

Answer 10

Specific
Measurable
Agreed
Realistic
Timely