Unit 44: Corporate Objectives

Unit 44: Corporate Objectives

1. What they are?

   • Objectives are statement of specific outcomes that are to be achieved
   • Corporate objectives are a type of objective that relate to the business as a whole
   • They are driven and influence by the vission, mission and aims of the business

2. Purpose

   • Provides strategic focus for the business
   • Measure the performance of the firm as a whole
   • Inform decision-making
   • Set the scene for more detailed functional objectives

3. Internal Influences

   • Business ownership
   • Attitudes to profit
   • Ethical stance
   • Short-terminism Vs. Long-terminism
   • Strategic position and resources
   • Stakeholder influence

4. External Influences

   • Economic environment
   • Political/ legal environment
   • Competitors
   • Social and technological change

5. Strategy

   • Long-term
   • Made by senior management
   • How the business intends to achieve its objectives

6. Tactics

   • Short-term
   • Often delegated to junior managment
   • Support achievement of specific targets
   • May not always align with long-term strategy

7. Mission Statement

   • Purpose
     • Provide a clear sense of business purpose
     • Excite, inspire, motivate and guide the intended audience
     • Help differentiate the business from its competitiors
     • Should be designed for all relevant stakeholders
   • Limitations
     • They are not always supported by the actions of the business
     • Often too vague or general
     • Often created for PR purposes rather than acting as a focus for business strategy