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4.1 Corporate Aims and Objectives
- Key Terms
- Mission Statement- This attempts to set
out the purpose of an organisation or
why it exists.
- Corporate Aims- The LT intentions of the
business or what it is trying to achieve
- Corporate Objective- These are the
targets that must be achieved if a firm is
to meet its stated aims. Must be SMART
- Specific, Measurable, Agreed,
Realistic, Time specific
- Specific, Measurable, Agreed,
Realistic, Time specific
- Stakeholder- An individual or group that has interest
in the activities or performance of an organisation
- Mission Statement- This attempts to set
out the purpose of an organisation or
why it exists.
- Firms create mission statements to give
stakeholders a clear understanding of the values
and purpose of an organisation
- Corporate aims, objectives and
strategies are for whole business and
form starting point for functional. (Unit3)
- Firms have more than one aim and objective.
- The main corporate objectives
- Survival
- growth
- profit maximisation
- Diversification
- Maximising shareholder value
through share price and dividends
- Meet needs of other specifed
stakeholder eg suppliers
through fair trade
- Survival
- Corporate strategies are what a
business plans to do in medium to
long term.
- Involve large investments of money, people
and effort so difficult to change
- Examples of corporate strategies
- Cost minimisation in all ways
- eg, relocating production abroad
- eg, relocating production abroad
- Bringing new products into the market ahead
of competitors by constant innovation.
- Standardising as many parts used in products
to maximise economies of scale all factories
worldwide. The car industry does this.
- Cost minimisation in all ways
- Number of models and theories of corporate strategy
- Ansoffs Matrix
- Porters Generic Strategies
- Ansoffs Matrix
- businesses have to recognise their responsibilities
to different stakeholders and take into account their
views on the activities of the business
- conflict can arise between decisions made
about aims, objectives and strategies and
various stakeholders
- Trying to resolve can be major challenge
- Trying to resolve can be major challenge
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