corporate objectives

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  • corporate objectives
    • what is an aim?
      • long term goals
        • benefit the local company
        • maximise growth
        • maximise shareholder value
        • maximise profits
        • maximise employee benefits
        • survival
      • what is an objective?
        • how the business will achieve its aims. They're known as short term goals
        • They need to be SMART
          • agreed
            • can achieve target but need to stretch yourself
          • measurable
            • means the achievement can be checked
          • realistic
            • target should be sensible so you can achieve it
          • specific
            • must be a clear definition often includes a number
          • timescaled
            • setting a date for achievement or review
        • They can be 3 different types:
          • short term - 1yr
          • long term - 5yrs+
          • medium term - 1-5 yrs
        • objectives are set at various levels:
          • corporate objectives - the whole company
          • department / functional objectives
    • mission statements
      • states the aims and provides a vision for  stakeholders also provides a promise for customers on what they should expect. employees should believe in it and therefore, creates a strong corporate culture
      • they must be constantly assessed looking at: the purpose, audience, how realistic, achievable and if it fits with the aims and objectives
    • uses and limitations of aims and objectives
      • limitations
        • can be unrealistic and over optimistic
        • can be a waste of management time
        • can lead to conflicts & inconsistencies when not properly written
        • can become obsolete as the business develops but the mission statement stays the same
        • can be ambiguous
      • uses
        • identity; externally can create a sense of identity for the organisation & it can help in establishing
        • profitability; strong corporate values lead to profitability & motivated & efficient employees as are aware their job has more purpose than just a general task
        • Focus; creates high levels of focus and involvement from people within the company, while assisting in the reinforcement of direction in which the organisation will take

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