Chapter 19 - Corporate Aims and Objectives

AQA business studies for A2 - Hodder Education notes on chapter 19

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Unit Four Notes
Chapter 19 ­ corporate aims and objectives
Corporate Aims and Objectives
Mission Statement: sets out what a firm is trying to achieve.
Mission statements usually focus on:
What the business wants to be
The values of the business
The scope of the firms activities
The importance of different groups such as employees, customers and investors.
The mission of a business will be influenced by:
The values of the founders
The values of staff working there
The industry
The ownership of the business
By setting out a mission everyone within the firm knows what they should ultimately be trying to do
and what manager's regard as important. Employee actions should be directed towards the same
thin. This should make decision making easier; when faces with a series of options managers can
compare them in relation to the overall objectives, purpose and value of the business.
However, some mission statements are so unrealistic that employees pay little attention to them.
Corporate aims and objectives
A Corporate Aim is usually part of the mission statement and sets out what a business wants to
achieve. An aim gives some sense of the direction in which the business wants to move. Corporate
aims are set by the directors of the business and are intended to provide guidance for setting
corporate and financial objectives.
Mission Statement
Objectives set at all
Corporate Aim levels contribute to
achievement of
Corporate Obj corporate aims and
Functional Obj

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Corporate Objectives
Smart- they must define exactly what the firm is measuring, such as sales or profits.
Measureable ­ they must include a quantifiable target.
Achievable - if targets are simply too high or hard, it will demotivate staff.
Realistic - if the objectives are unrealistic people won't even both to try and meet them.
Time Specific ­ employees need to know how long they have to achieve the target.…read more

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Corporate Strategies
A Corporate Strategy is a long-term plan to achieve the businesses corporate objectives.
Strategies tend to involve a major commitment of resourced and are difficult to reverse. The value of
producing a clear strategy is it sets out the firms overall plans; this helps employee's develop their
own plans to implement the strategy.…read more

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Cost Leadership
Through providing basic products at minimum cost. A cost leadership strategy means that a business
seeks to produce its products at the lowest possible cost. This gives it flexibility in pricing; it can
increase market share by selling at prices below those of its rivals and still generate profits;
alternatively it can set its prices at the general industry level and reap higher profit margins on each
sale.…read more

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Different Stakeholder Perspectives
Stakeholders Possible Nature of Stakeholders Interest.…read more


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