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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…

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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…

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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…

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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…

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Different Stakeholder Perspectives


Stakeholders Possible Nature of Stakeholders Interest.

Shareholders Expectation of regular dividends
Rising share prices
Preferential treatments as customers
Employees Steady and regular income
Healthy and safe working conditions
Job security
Promotion and higher incomes
Customers Certain and reliable supply of goods
Stable prices
Safe products
After-sales service…

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