3.1.1 Corporate Objectives

Question 1

Corporate Aims

Answer 1

Long term intentions of the business

Question 2

Corporate Objectives

Answer 2

Targets that must be achieved in order to realise the aims of the business.

Question 3

Mission Statement

Answer 3

States key activity and purpose of an organisation. Includes corporate aims and objectives.

Question 4

Critical Appraisal of Mission statement

Answer 4

Use SMART to evaluate mission statements.

Question 5

SMART

Answer 5

Specific 
Measurable 
Attainable 
Realistic 
Time

Question 6

Factors that effect business choosing short or long term objectives

Answer 6

Financial position 
Market position 
Economic conditions
Government policy 
Social change

Question 7

Common objectives

Answer 7

Profit 
- priority for private sector 
Growth 
Social considerations 
Employee wealth fare

Question 8

Conflicting Objectives

Answer 8

Growth Vs Profit
- has to spend money to grow, looses profit

Profit Vs Employee wealth fare
- spend money on employee wealth fare, looses profit

Question 9

Stake holder

Answer 9

People affected by the actions of a business

• employees
• local community
• customers
• suppliers

Question 10

Shareholders

Answer 10

Someone who invested money into a business and gained shares. Profit driven

Question 11

Stake holders conflicting interests…

Answer 11

Shareholders Vs Local community
- not really profitable to help

Shareholders Vs Suppliers
- to increase profitability supply prices would decrease

Shareholders Vs Employees
- additional training will cost extra decreasing profitability