3.1.1 Corporate Objectives

Mission Statement

• Businesses have a similar way of looking at things. This chapter is about how a business might have genera long term objectives which can be broken down into identifiable, measurable objectives and targets. It has a hierarchy running down from aims, to mission, objectives, strategies and tactics. The latter are the means by which the business will actually achieve its aims and objectives.
• Business aims are very broad, long term ideas as to how the business should develop. They can sound rather vague and open to interpretation. They may be statements of intent such as to be the biggest or the best at something. They may reflect ethical values and ambitions and they will certainly change over time as the business grows and its direction changes.
• Many businesses try to express their aims via a mission statement. In this way their aims can be made inspirational and motivating, suggesting a vision that highlight a common purpose.
• - the mission statement reflects the main purpose and principle of the business.
• - it states what the business is, what it does and its direction.
• - employees and other stakeholders should be able to understand the mission statement easily.

Corporate Objectives

• Corporate objectives are derived from the aims and mission statement. They are more precise and set out goals and targets that the business wants to achieve. They should be practical, specific and measurable, so that the business can judge the success or otherwise of it efforts to achieve these objectives. As well as defining ambitious targets for the business as a whole, subsidiary objectives will apply to individual departments and business functions too.
• Corporate objectives should be SMART - this is an acronym for Specific, Measurable, Achievable, Relevant and Time bound.

Critical Appraisal of MS/CA

• Mission statements can be seen as written expressions of corporate aims describing the overall aspirations of the business. They set out what the business does and how they are going to meet the needs of the customer. They are intended for all stakeholders, although the customer is usually the main focus. They are written in qualitative terms designed to show the business in a positive light. Mission statements are also intended to create a sense of unity and common purpose amongst employees and encourage them to work together for the good of the business and to achieve its corporate aims. They can also be statements of ethical principles and practices.
• Mission statements are sometimes criticised as a little more than window dressing, fine words designed to make the company look good and improve their image. They take time and money to create so are they worth it?

Benefits of a mission statement

• - a simple and clear mission statement can act as a motivational tool within the business. It can encourage employees to work together towards one common goal that benefits both the organisation and themselves. A good mission statement helps to engender job satisfaction and motivation, leading to increase productivity.
• - it signifies clear intent and direction and acts as a signal to all stakeholders that the business knows what it is doing and is on the right path. It is this sense of coherence and stability that is perhaps the mission statement's most important attribute.

Drawbacks of a mission statement

• For many businesses the mission statement may be too vague or unrealistic to be of use. How can the purpose of a business be condensed into a few lines or sentences?
• - a business may want its mission statement to sound good but its main purpose us to get people to do things. An unrealistic mission statement can actually be de-motivating; employees may struggle to meet its demands and it may lead to the business to make unwise decisions.
• - mission statements have also been criticised as a waste of time and money; those resources could be better used in other areas of the business. In short, mission statements may be no more than a PR exercise.