Corporate Objectives

Hierarchy of Objectives

  • Objectives range from strategic to tactical/operational.

  • Strategic objectives are 'big picture' and 'long term'.

  • Tactical objectives are more day-to-day.

Business Aims

  • Business aims are long-term goals.

  • They are generally not specific and reflect an overall vision.

  • Example: Landry Air PLC aims to be the number one airline in Europe.

Mission Statements

  • Mission statements are short, written declarations reflecting:

    • Main Purpose: Why the business exists, for whom, and why.

    • Values: Integrity, sustainability, innovation, quality.

    • Standards & Behaviours: Ethical behaviour.

    • Strategy: How the business will achieve its main strategy.

  • Example: ‘To make the whole of Europe smile blue, on time and every time in a planet that remains green’ for Landry Air PLC.

Aspects of Mission Statements

  • Mission statements guide decision-making.

  • Help create a shared purpose for workers.

  • Help customers understand the business's commitment.

  • Remind stakeholders of the business's purpose.

  • Encourage a specific culture within the business.

Qualities of Effective Mission Statements

  • Brief.

  • Believable.

  • Memorable.

  • Easily understood by all stakeholders.

  • Well-communicated.

Corporate Objectives

  • Set by the CEO and board of directors.

  • Specific to the business.

  • Aligned with aims and mission statement.

  • Cover specific goals like market share, profit targets, new markets, and employee welfare.

  • Usually SMART (Specific, Measurable, Agreed, Realistic, Time-bound).

  • Examples for Landry Air PLC:

    • Increase airports flown to in Europe by 20% by 2030.

    • Achieve 95% customer satisfaction on all flights by 2025.

    • Cut CO2CO_2 emissions by 50% by 2030.

SMART Objectives

  • Specific: Clearly defined.

  • Measurable: Progress can be tracked.

  • Agreed: All stakeholders are on board.

  • Realistic: Achievable with available resources.

  • Time Bound: Completion date specified.

Functional Objectives

  • Related to corporate objectives.

  • Specific to each department (e.g., marketing, HR, Finance).

  • Example: HR department at Landry Air PLC to change recruitment processes by 2024 to prioritize customer-focused employees.

Team & Individual Objectives

  • Set for staff members, often via appraisal reviews.

  • Aligned with functional objectives.

  • Example: Cabin crew team to attend a 1-day customer service training course to improve customer reviews.

Issues with Mission Statements & Corporate Aims

  • Can be unrealistic or too optimistic.

  • May appear as marketing slogans.

  • CSR (corporate social responsibilities) objectives might conflict with customer beliefs.

  • Change over time due to new leadership or changes in the external environment.