BUSS 4 theory
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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
In this topic you will learn about:
 Understanding Mission, Aims and Objectives
◦ Mission statements
◦ Corporate aims and objectives
◦ Corporate strategies
◦ Differing stakeholder perspectives
This follows on from
BUSS3 where you studied
corporate and functional
objectives.
Candidates should understand the purpose and nature of
corporate strategies and their relationship with aims and
Syllabus
Aims
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 .
BUSS4.1 Mission, Aims and Objectives
Do you think these statements are a fair reflection of their actions?
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?
Are there any benefits of having a good
mission statement?
 For the Board of Directors?
 For the shareholders?
 For the managers?
 For the workers?
 For the customers?
 For the suppliers?
 For the community?
Mission statement – Levi Strauss
People love our clothes and
trust our company. We will
market the most appealing
and widely worn casual
clothing in the world. We
will clothe the world.
Your task
 Mix & Match Activity…
 Using the following cards mix and match the
mission statements to the relevant
companies.
 In some instances a ‘???’ has been used to
replace ‘obvious’ links to the company!
Extension task…
 Take one of these
company’s mission
statements…







For the Board of Directors?
For the shareholders?
For the managers?
For the workers?
For the customers?
For the suppliers?
For the community?
Are there
any
benefits of
having a
good
mission
statement?
Are there any benefits of having a good
mission statement?
 It focuses your energy and clarifies your
purpose.
 You have to really define what you are going to do.
 Should motivate board, staff, volunteers, and
donors.
 It also helps attract people and resources.
 It will be a great public relations tool.
Five characteristics of a good mission
statement

Contains a formulation of objectives that enables
progress towards them to be measured

Differentiates the business from its competitions

Defines the markets or business in which the firm
wants to operate

Is relevant to all major stakeholders - not just
shareholders and managers

Excites, inspires, motivates & guides
Other characteristics of a good mission
statement
 Brief in length
 Communicates key values
 A very general statement
 Realistic and achievable
 Flexible-should be able to
 Based on consultation
accommodate change
 Supported by senior
 Business specific and
distinctive
management
Criticisms of mission statements
 Not always supported by actions of the business
 Often too vague and general
 Often merely statements of the obvious
 Often seen as a PR exercise
 Sometimes regarded cynically by staff
 Sometimes not a true reflection of reality
 To mean anything they must be supported
wholeheartedly by senior management
Exam technique
BUSS4
Your Summer exam!
 The Business Environment and Managing Change
 25% of A Level
 1 hour 45 minutes examination
 80 marks
 TWO essay paper
 Pre-release research tasks leading to an article linked essay
question.
 Second section will consist of choice of 3 essays, one .
 This is a synoptic paper drawing upon knowledge from all four
units.
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 or any other
organisations you know, to what extent do you
agree that a clear mission statement is crucial
Essay Skills
 Define key term “Mission Statement”
 Give examples of good mission statements that work /
fail
 Agree that a clear mission statement is crucial to the
success of a business – with examples of how it can help
 Disagree that a clear mission statement is NOT crucial to
the success of a business – with examples of how it doesn’t
help
 Disagree that a clear mission statement is NOT crucial to
the success of a business – with examples of what is needed
for a business success…
 Overall, what do you think is key to business success…
using the company in the essay Q.
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
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.
Corporate objectives
 Medium to long term targets of a business
◦ Tend to be quantifiable
 S
 M
 A
 R
 T
 Coordinate functional areas within the business
 Inform corporate strategy
 Quantifiable targets against which performance can be
measured
Main functions of objectives

A clear statement of what needs to be
achieved

A focus for all activity

Targets for individual and group
achievement

A means of measuring performance
How objectives can be used

Implement the mission

Provide a clear focus for decision making

Provide a target

Motivate employees

Facilitate control of actual performance

Provide a criteria for evaluating performance

Reduce uncertainty

Provide a sense of unity
Homework
 Read The Economist article & complete Q’s