business - corporate objectives

chapter 1

Objectives definition

objectives are specific and measurable desired outcomes that help a business achieve their stated aims

Mission statement definition

a brief statement , written by the business describing its purpose and objectives. designed to encapsulate its present operations

What a mission statement includes

• purpose - what the business does. for whom and why.

• values - corporate values the bus. emotionally invests in ; integrity , sustainability and innovation

• standards and behaviour - commitment to high standards

• strategy - how the business will try to achieve its objective

How a mission statement may be helpful

a good mission statement should clarify the direction a business should take by reminding the shareholders why the business exists

Two reasons for the creation of a mission statement

• to make a commitment to its customers - a promise to customers on what they can expect the business to strive for

• to bring the companies workforce with a shared purpose - it assists in forming a strong corporate culture

What does SMART stand for

• specific - it is clearly stated what the business is aiming to achieve

• measurable - a financial or quantifiable element should be included to make it easy to measure the success of the objective

• agreed - implies that everyone responsible for achieving the objective has agreed w it and understands what it means for them. without agreement from all those involved there will be a lack of commitment and motivation

• realistic - ensures that the objective is achievable with the resources available

• time specific - gives a stated time frame within which the objectives are to be achieved

Corporate objective definition

a combination of all departmental objectives. this is the objectives of a medium to large size business as a whole , set by senior managers and directors

Critical appraisal definition

Critical appraisal means reviewing or revising whether the business is able to achieve its mission statement or not