Corporate Objectives

• What are objectives?


  Objectives are statements of specific outcomes that are to be achieved
• What are corporate objectives?

  • Corporate objectives are those that relate to the business as a whole
  • Theyre driven and influenced by the vision, mission and aims of a business
  • More precise and detailed statements of aims
• Main purposes of them

  • Provide strategic focus
  • Measure performance of the firm as a whole
  • Inform decision making
  • Set the scene for more detailed functional objectives
• Benefits of SMART objectives

  Specific, Measurable, Achievable, Realistic, Time-bound
• What is impacted in the business by corporate objectives

  1. Market - market share, customer satisfaction, product range
  2. Innovation - new products, better processes
  3. Productivity
  4. Physical & financial - factories, locations
  5. Profitability
  6. Management & Employees
  7. Public
• Internal influences

  
  

  1. Business Ownership
  2. Attitude to profit
  3. Ethical stance
  4. Organisational Culture
  5. Leadership
  6. Strategic position & Resoures
  7. Stakeholder influence
• External influence

  
  

  1. Short-termism
  2. Economic environment
  3. Political environment
  4. Competitors
  5. Social & Technological
• Short termism

  where a business prioritises short-term rather than the long-term performance
• Strategy 


  1. Usually long-term
  2. Made by senior management
  3. How they intend to achieve its objectives
• Tactics

  
  

  1. Support achievement of specific targets
  2. Usually routine & short-term
  3. Delegated to junior management