3.1.1 Corporate Objectives

Key Terms

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

Vision - this states the ultimate goal of what the business would like to achieve in the long-term or future

Corporate Objectives - The objectives of a medium to large-sized business as a whole, set by senior management

Departmental Objectives - The objectives of a department within a business

Purpose of Mission Statement

Differentiates the business from its competitors

Defines the markets or business in which the business wants to operate

Is relevant to all major stakeholders - not just shareholders and managers

Excites, inspires, motivates & guides – particularly important for employees

Requirements for Corporate Objectives

They should flow from the mission statement and corporate vision

They are usually set by senior management for the whole company

They are aimed at satisfying the shareholders so may be related to profits or dividends

SMART Objectives

Specific - must be a clear aim, often including a number

Measurable - so the achievement can be checked (as it progresses or at the end of set time period)

Achievable - so you can achieve your target, but may need to stretch yourself

Realistic - target should be sensible so you can achieve it

Time-related - setting a date for achievement or review

An example: "To achieve a 30% share of the total sales in the children's clothing market within 5 years."