Corporate objectives


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  • 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
    • Departamen-tal 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

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