Corporate objectives
- Created by: noe
- Created on: 13-10-20 11:38
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- Corporate objectives
- Mission statement: a brief statement written by the business, describing its purpose and objectives, designed to cover its present operations.
- Helps guide decision making of a firm by making clear which direction a business should take
- Used to make a commitment to customers expressing what they can expect from the business
- Used to bring a company's workforce together with a shared purpose that the employees believe in.
- Corporate objectives: objectives of a medium to large-sized business as a whole set by directors and senior managers
- They should be specific, measurable, agreed, realistic and time specific
- Focus on the desired performance and results of the business over time
- Businesses tend to have corporate objectives that cover a range of issues ranging from profitability to corporate social responsibility
- These may conflict with each other
- Departament and functional objectives: objectives of a department within a business
- These refer back to the corporate objectives and mission statement so that goals and activities of the business are consistent
- Objectives between departments should be aligned with one another
- Critical appraisal of mission statements and corporate aims
- If mission statements are unrealistic and too optimistic employees may become demotivated because they know it can't be achieved
- If mission statement is vague and appears insincere it might cause stakeholders to see it as a simple marketing tool
- Mission statements should continually be critically assessed to ensured they have continued relevance for the business
- Unrealistic mission statements aren't useful and therefore, a waste of management time
- Mission statement: a brief statement written by the business, describing its purpose and objectives, designed to cover its present operations.
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