Corporate Objectives 3.1.1

Question 1

What is an aim?

Answer 1

What the business is looking to achieve in the long term - often expressed as an overall vision and describes the business’s overall reason for being.

Question 2

What is a Mission Statement?

Answer 2

An expression of the business’s overall aim as well as its core values and context. It helps to inform the development of corporate and functional objectives.

Question 3

What is a Corporate Objective?

Answer 3

The specific performance goals set by senior management for the business to achieve over time that are derived from the firm’s overall aim and mission statement.

Question 4

What is a Functional Objective?

Answer 4

The day-to-day goals of functions or departments within the business, that are derived from corporate objectives. They are carefully aligned across departments so that all parts of the business are working towards the shared goal.

Question 5

SMART Objectives

Answer 5

S- specific
M- measurable
A- agreed
R- realistic
T- timely

Question 6

Critical Appraisals of Mission Statements/ Corporate Aims

Answer 6

• Businesses need to critically assess whether they continue to reflect the current corporate vision
• Should decide whether changes should be made considering:
  
  • Strategies adopted to support the aim/ mission
  • They are realistic/ achievable in the current trade environment
  • The message effectively communicates the aim with stakeholders

Question 7

Why should a business revise its aims/ mission statement?

Answer 7

It is a natural step for growing businesses.
- It gives a chance to involve a variety of stakeholders in determining direction of the business
- Newly-identified opportunities and threats can be acknowledged
- Sharing refreshed priorities can generate positive publicity