3.3.1
CORPORATE OBJECTIVES
Y13 A Level Business ESK 2019_20
IMPORTANCE OF OBJECTIVES
What is a business objective?
Why is it important for businesses to have objectives?
• An objective is a business aim that helps to direct, control and review the success of a business
activity.
• For any corporate objective to be successfully achieved, the aim has to be aligned with an
appropriate strategy or plan of action to ensure that resources are correctly directed towards the
final goal.
• Once corporate objectives have been set a business strategy is developed. This should be
constantly reviewed to check whether the business is on target to achieve its objectives.
• The aims of an organisation and the strategies it adopts will often change over time.
MISSION STATEMENT
• Corporate aims are the long-term goals which a business hopes to achieve.
• The core of a businesses activity is expressed in its corporate aims and plans.
• An organisation's aims are often outlined in the mission statement.
• A typical corporate aim is: "To increase shareholder returns each year
through business expansion"
MISSION VS VISION STATEMENT
• Mission statement: A statement of the business's core aims,
phrased in a way to motivate employees and to stimulate interest
by outside groups.
• Vision statement: A statement of what the organisation would like
to achieve or accomplish in the long term.
• Examples of Mission statements
EXAMPLES OF MISSION STATEMENTS
• “Bringing the best user experience to its customers through its
innovative hardware, software, and services.”
• “We will devote our human resources and technology to create
superior products and services, thereby contributing to a better
global society.”
• “To become the preferred leading European air carrier with a
global network of coverage thanks to its strict compliance with
flight safety, reliability, product line, service quality and
competitiveness, whilst maintaining its identity as the flag
carrier of the Republic of Turkey.”
• “To bring inspiration and innovation to every athlete in the
world.”
ACTIVITY
• Consider one of your favourite business that you buy
products from. Do you know what the vision and
mission statements are? If not research online to find
out.
• Once you know what they are decide if you think the
business is achieving their overall corporate objective
(MISSION STATEMENT)
SOME COMMON
CORPORATE
OBJECTIVES
• Profit maximisation
• Profit satisficing (make sufficient
profits)
• Growth
• Increasing market share
• Survival
• Corporate social responsibility (CSR)
• Maximising short-term sales revenue
• Maximising shareholder value
• FACTORS DETERMINING
CORPORATE OBJECTIVES:
• Corporate culture
• Size and legal form of the
business
• Public sector or private
sector businesses
• Well established businesses
DEVELOPMENT OF CORPORATE OBJECTIVES
• Corporate objectives are objectives set by senior
management of a company. They must be specific to the
company, its particular history and vision or the future and fit
well with the company’s mission statement.
• To help a business achieve its aims, corporate objectives
must be :
• Specific
• Measurable
• Agreed
• Realistic
• Timed
ACTIVITY
• Create a personal SMART goal for yourself.
• Now choose one of the following companies and select a specific area of the business and a
specific area within this department to focus. Now develop a SMART goal for this.