BUSS4-Coporate Aims and Objectives Notes

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Mission Statements
"A qualitative statement of an organisation's aims. It is used to motivate employees,
convince customers, suppliers and those outside the firm"
Must have a clear understanding of its purpose
What the company is doing/ought to be doing
Presented in a clear and memorable way
Ensure employees understand ­ desirable company culture ­ get everyone
Idealistic values that have no meaning in practice ­ PR strategy
Do not provide a clear signal ­ purpose, values and strategy
Can harm relationships as workers may disagree
Needs to be checked and monitored
Corporate Aims and Objectives ­
Corporate Aims - Long term intentions of a business
Corporate aims are provided in mission statement form; provide a general focus and
common purpose. The collective views help build team spirit and encourage commitment.
It determines the way the firm develops.
Corporate Objectives ­ Targets that must be achieved to meet aims.
Corporate Objectives are medium to long term targets and provide a sense of
direction. It encourages a common purpose making it easier to coordinate actions and
create team spirit. It can lead to increased efficiency and more productive and
motivated staff.
Key Corporate Aims and Objectives
o Survival
Survival is a key objective for small or new firms; it is even more significant in
times of uncertainty and recession.
o Profit
Depends on: competition, capacity, stage of the business cycle and demand for
the product
o Growth
Increasing market share, turnover, outlets and business areas. It can be
achieved by growth in the existing business or a potential takeover.
o Diversification
Diversify in order to spread the risk by reducing dependency.
o Meeting the needs of stakeholders
Helping stakeholders will enhance the reputation of the company and may lead
to increased output due to motivation.

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Corporate Strategies
"General approaches that a company uses and the policies and plans it develops in order
to achieve its corporate aims and objectives.
Corporate strategies are planned by the board of directors but have an impact at
functional level within the firm. ­ MARKET, COMPETITORS and HOW TO COMPETE.
It may involve decisions on whether to diversify and how various products fir together
to contribute to overall success.…read more


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