Corporate Aims and Objectives
Understanding Mission, Aims and
Objectives
“Organisational values’ always derive from ‘individual’s values’- especially
those of the founding fathers and of the very top executives. “
SK Chakraborty
“To last, a company must strive to add long-term value rather than going for
the quick buck…it must be guided by the desire for continued relations with
its principal constituencies – employees, customers, suppliers, stockholders. “
Charles Koch
BUSS4.1 Mission, Aims and Objectives
In this topic you will learn about:

Understanding Mission, Aims and
Objectives
◦ Mission statements
This follows on from
BUSS3 where you
studied corporate and
functional objectives.
◦ Corporate aims and objectives
◦ Corporate strategies
◦ Differing stakeholder perspectives
BUSS4.1 Mission, Aims and Objectives
Within BUSS4 you will be studying large organisations.
Which organisations do you think each of these statements belong to?

To bring inspiration and innovation to every athlete in
the world.

To help people and businesses throughout the world
realize their full potential. This is our mission.
Everything we do reflects this mission and the values
that make it possible.

To ensure the ability of the earth to nurture life in all
its diversity.

To be the most innovative and distinctive broadcaster
in the UK, to provide effective competition to the
BBC, to engage and challenge audiences .
Do you think these statements are a fair reflection of their actions?
BUSS4.1 Mission, Aims and Objectives
Mission Statements
“A mission statement is a brief written statement of
the purpose of a company or organisation. Ideally, a
mission statement guides the actions of the
organisation, spells out its overall goal, provides a sense
of direction, and guides decision making for all levels of
management.”
Source: Wikipedia
Why is it important to share a company’s mission statement with
employees?
Why is it important for managers to think back to the mission statement
when making strategic decisions?
Does your school, college or work place have a mission statement?
How does it influence the actions of managers?
How does it influence your actions?
BUSS4.1 Mission, Aims and Objectives
Supporting your studies with wider reading.
Throughout this final unit it is important that you build upon your business
studies knowledge with examples of business practice from the real world. In
both parts of the final examination you will be rewarded for bringing in
examples from your wider reading.
Select 2 large businesses that you are interested in
or have been tracking as part of your studies.
◦ Visit the websites of these businesses and identify the
mission statement
◦ Do you think this mission statement is a clear reflection of
the businesses?
◦ What do you think makes a good mission statement?
◦ What are the benefits of a mission statement?
◦ What actions can (do) the businesses take to help achieve
their mission statements?
BUSS4.1 Mission, Aims and Objectives
Corporate aims and objectives
Mission Statement
The overall reason for the business’ existence
Corporate Aims
The long term targets and plans to fulfil the
mission statement
Corporate Objectives
The medium to long term quantifiable targets to
fulfil the mission statement
Corporate Strategy
The actions to be taken by the business to
achieve
BUSS4.1 Mission, Aims and Objectives
Corporate aims

Long term targets of a business
◦ Tend to be qualitative
Provides a direction for the business
 Inform corporate objectives and
strategies
 Performance can be measured against
these aims

Look at the Coca Cola web site to see how it has taken the mission
statement and translated this into visions or aims.
BUSS4.1 Mission, Aims and Objectives
Corporate objectives

Medium to long term targets of a business
◦ Tend to be quantifiable








S
M
A
R
T
Read the case study on the
Foreign and Commonwealth
Office at www.times100.co.uk
Using the FCO as an example
draw a flow diagram to explain
the relationship between mission,
aims, objectives and strategy.
Coordinate functional areas within the
business
Inform corporate strategy
Quantifiable targets against which
performance can be measured
BUSS4.1 Mission, Aims and Objectives
Corporate strategies
Medium to long term plans of a business
 Details how aims and objectives will be
met through decisions and activities
relating to all aspects of the business

Where is
the
business
now?
How is it going to make this journey?
Corporate strategy
The current position may
be assessed using a
SWOT analysis
Where
does it
want to
be in the
future?
Corporate aims and
objectives
BUSS4.1 Mission, Aims and Objectives
Corporate Strategy

Strategy Consulting Limited provides specialist advice to help
business’ develop their corporate strategy. The services offered
to their clients include:
◦ An overview of your market — mapping out just where your clients’ needs are
and how best you can fulfil them.
◦ Perspective on your competitors — checking their offer, seeing what they do well,
realising what you can do better.
◦ Understanding of business dynamics — seeing the cycle of business organisations
and knowing how to optimise the position your business is in.
◦ A comprehensive SWOT analysis — putting your company’s strengths, weaknesses,
opportunities and threats into a form and a context which furnishes you with an
invaluable tool for strategic planning.
◦ Expert guidance on processes and procedures — helping you set in place the
systems and mechanisms which seek to ensure that the strategy is not just put in
place but delivered effectively.
◦ Prompt planning for increased profits — putting in place a corporate strategy
which can enhance your chances for a better bottom line.
Source: http://www.strategyconsultinglimited.co.uk
BUSS4.1 Mission, Aims and Objectives
Corporate strategy – recap BUSS3
Porter’s Generic Strategy
Lowest
Cost
Mass
Market
Niche
Market
Highest
Differentiation
Cost
Leadership
Differentiation
Focused Cost
Leadership
Focused
Differentiation
How can Porter’s Generic Strategy help assess and develop corporate strategy?
BUSS4.1 Mission Aims and Objectives
Corporate strategy – recap BUSS3
Igor Ansoff’s Matrix
Existing
PRODUCTS
New
Existing
Market
Penetration
Product
Development
Market
Development
Diversification
MARKETS
New
How can Igor Ansoff’s Matrix help assess and develop corporate strategy?
Corporate strategy
Strategic decisions are made by managers
at the top of the hierarchy and once
made are difficult to reverse
 Corporate strategy may include:

◦ Globalisation (BUSS4.2)
◦ Operational efficiency (BUSS3 Functional strategies –
remember BUSS4 is synoptic)
◦ Growth strategies through acquisitions or
mergers (BUSS4.7)
BUSS4.1 Mission Aims and Objectives
Stakeholder perspectives
Employees
Pressure
Groups
Government
Shareholders
Stakeholder
Any one with
an interest in
the actions of
a business
Customers
Community
Suppliers
Investors
Creditors
BUSS4.1 Mission, Aims and Objectives
Stakeholder perspectives - Tesco
Print off this slide and for each of Tesco’s stakeholders add what their objectives
are likely to be
Employees
Pressure
Groups
Government
Shareholders
Stakeholder
Any one with
an interest in
the actions of
a business
Customers
Community
Suppliers
Investors
Creditors
BUSS4.1 Mission, Aims and Objectives
Conflict of interest
Each individual group of stakeholders will
have their own objectives
 There is therefore likely to be conflict
between some of these objectives

Watch the video clip on expansion plans at Luton Airport
Who are the stakeholders?
What are the individual stakeholder objectives?
What is the potential conflict between stakeholder
perspectives?
BUSS4.1 Mission, Aims and Objectives
Stakeholders and decision making


Different stakeholders can put pressure on businesses
The degree of pressure depends on the relative power
of stakeholder groups
Stakeholder
Pressure
Employee
• Industrial action
• Labour turnover
Community
• Lobbying
• Boycott
Government
• Legislation
• Intervention ( both covered in BUSS4.3)
Suppliers
• Payment terms
• Exclusivity agreements
Customers
• Environmental or ethical demands
• Direct impact upon demand
Draw and complete a similar table for the
other stakeholders.
Are
stakeholders
able to affect
business
behaviour?
BUSS4.1 Mission, Aims and Objectives
Activity
Visit the Prêt a Manger web site at www.pret.com
Identify its :
Mission statement
Corporate aims and objectives
Identify what it does to look after its stakeholders.
Discuss:
To what extent do you think the success of Prêt a Manger is a
result of a clear mission and understanding stakeholder
perspectives?
BUSS4.1 Mission, Aims and Objectives
Essay

Starbucks’ is a leading high street coffee retailer
established in Seattle in 1971 and now operating
across over 40 countries. Its mission statement is
“to establish Starbucks as the premier purveyor
of the finest coffee in the world while maintaining
our uncompromising principles as we grow.”
With reference to Starbucks and/or any other
organisations you know, to what extent do you
agree that a clear mission statement is crucial to
the success of a business?
BUSS4.1 Mission, Aims and Objectives