3.1.1 Corporate Objectives

• Aims - broad target/goal/long term vision - usually translated into a mission/value statement
• Objectives - specific target , short-medium term to meet overall aim
• mission statement - a qualitative statement of the organisation's aims
• profit maximisation - making as much profit as possible by reducing costs or increasing revenue
• sales maximisation - making as many sales/revenue as possible (via marketing strategies)
• cost efficiencies - reducing costs as much as possible
• maximising market share - increasing market share
• survival - a short term aim for new businesses to survive (perhaps by breaking even)
• employee welfare - the provision of facilities and services to employees to improve their working conditions
• customer satisfaction - keeping customers happy whether it be with the customer service provided or product itself
• social objectives - goals where the company aims to give back to society (via charity etc)
• profit satisficing - making enough profit to satisfy its influences E.g. dividends for shareholders & wages for employees
• objectives should be:

  • Specific
  • Measurable
  • Attainable
  • Realistic
  • Time-bound
• Critical appraisal of mission statements:

  • Effective should be:
  • concise
  • less than 30 secs to read out
  • clear on overarching purpose of the business
  • focus on goal & objectives
  • Aimed at:
  • customers - leave a lasting impression & more effective than advertising
  • investors - gives them an idea of the company & their direction
  • employees - provide a guide to the value of the company