3.1.1 Corporate Objectives

Key Terms

🔗 Objective: A short-term goal set by a business that they aim to achieve within a period of time.

Mission Statement: An aspiration of the business that is communicated to its stakeholders.

Corporate Objectives: Goals set for all departments and across the entire business by chief executives.

Functional Objectives: Specific goals set for specific departments and teams within a business

Strategies: A method that sets out the long-term direction a firm will take to achieve its objectives.

Hierarchy of objectives

Pros and cons of mission statement

• Motivates workers as it makes them feel valued and part of a common vision -> Increases productivity and quality of customer service
• Generates positive PR for business -> Appeals to customers who are connected with the vision/aim -> Strengthens brand and increases customer retention -> Market share
• Can be unrealistic and potentially too ambitious -> Ridiculed by the public rather than praised (social media) -> Negative PR
• Can be detrimental to operations -> The Mission statement is ambiguous and therefore does not provide direction for employees. Can also conflict with stakeholders 📝 (E.G Shareholders want profit maximisation; the public may want the mission statement fulfilled)