AQA BUSS4 - Corporate Aims and Objectives

Revision notes for the 'Corporate Aims and Objectives' chapter for BUSS4 AQA. No case studies included, just the theory from the specification.

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Corporate Aims and Objectives
Missions Statements
Missions Statement ­ a qualitative statement of an organisation's aims. It uses
language intended to motivate employees and convince customers, suppliers and
those outside the firm of its sincerity and commitment
Before an organisation can start to address the task of planning and setting objectives, it
must have a clear understanding of its purpose. The mission statement does this. It
communicates with key stakeholders what the company is doing and what it ought to be
doing. It should be presented in as clear, consider and memorable way as possible.
Companies have mission statements mainly to ensure the employees know what the
company does. This way all employees can understand and identify with this, and can help
create a desirable company culture.
When drawing up a mission statement, certain factors need to be considered:
o They can tend to ignore parts of the business, as many businesses now do multiple
things, e.g. Tesco sell insurance
Can have mission books or lists in order to cover all of the company's activities
o Should start from the top and get everybody involved in thinking about what the
statement is going to be
It should be understood at the top first and passed down, ensuring everybody
on the way down understands what it means to them
o Needs to be continually monitored and perhaps altered if things change
Problems with Mission Statements:
Contain idealistic values that have no meaning in practice. They are simply a PR
Can fail to have an impact on company performance as they do not provide a clear
signal as to how the purpose, values and strategy should guide employee's standards
and behaviour
Do not add value and can do serious harm as workers may seriously disagree and
ridicule it
Need to match what is actually happening in the company
Need to be checked for any hidden meanings or negative implications

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Corporate Aims and Objectives
Corporate Aims - Long term intentions of a business
Corporate aims are often provided in mission statement form. They give a general focus so
other objectives can be set. They provide a common purpose for everybody to identify with
and work towards, as well as a collective view that helps build team spirit and encourage
commitment. They determine the way in which an organisation will develop.…read more

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General approaches that a company uses and the policies and plans it develops in
order to achieve its corporate aims and objectives. These can be detailed more
into functional strategies
Corporate Strategies are planned by the board of directors but have an impact at functional
levels within the firm. They involve decisions about broad issues such as what precise market
the business is in, who its competitors are, and how it intends to compete.…read more


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