3.1.1 Corporate objectives

Theme 3 Business ( paper 2)

What is the aim of a business?

The long-term objective that includes the overriding goal of the business and the reason why it exists.

What is a mission statement?

A relatively brief outline of the business that includes a broad number of topics, such as its purpose and goals.

Give an example of a mission statement from Google.

To organize the world's information and make it universally accessible and useful.

What are corporate objectives?

Objectives that relate to the business as a whole, set by senior management, often aimed at satisfying shareholders.

Provide an example of a corporate objective from Microsoft.

Achieve carbon negative operations by 2030.

What are department functional objectives?

Detailed specifics on how corporate aims will be met, flowing from corporate objectives.

What does SMART stand for in the context of objectives?

Specific, Measurable, Achievable, Realistic, Timed.

What does 'Specific' mean in SMART objectives?

The objectives set need to be clear about what they plan to do.

Why is it important for objectives to be Measurable?

So the business can track progress and see how it is doing in relation to its objectives.

What does 'Achievable' imply in SMART objectives?

Objectives need to be attainable but should also stretch the business to work hard to achieve them.

What does 'Realistic' mean in the context of SMART objectives?

Objectives should be sensible, allowing the business to achieve them.

What is meant by 'Timed' in SMART objectives?

The business needs to set a date for when the objective should be achieved.

What is the purpose of corporate objectives?

To set out the overall aim of the business and its long-term objectives.

Who is the intended audience for corporate objectives?

Stakeholders of the business.

How should corporate strategy relate to corporate objectives?

The corporate strategy should flow from the mission statement and outline the business's objectives.

What is one use of mission statements and corporate objectives?

To track progress and ensure the business is heading in its intended direction.

What is a limitation of corporate objectives?

They are not always supported by business actions, which can make them less beneficial.

What can corporate objectives be viewed as, according to critics?

Attempts to enhance public relations rather than being useful tools for the business.

Name an internal influence on corporate objectives.

Business ownership, attitude and profit, ethical stance, strategic position and resources, or stakeholder influence.

What is a key external influence on corporate objectives?

Economic environment, political/legal environment, competitors, or social and technological change.

What is the difference between strategy and tactics in business?

Strategy is how the business intends to achieve its long-term objectives, while tactics support the achievement of specific targets and are usually short-term.