Corporate objectives are statements of intent that provide the basic direction for the activities of an organisation in pursuit of its mission.
Corporate objectives are set by senior managers and directors of a company.
Will you be sitting around a table like this one day?
In some businesses, objectives may be derived from the organisations 'mission'.
A mission statement declares the business's overriding purpose, but also might reflect its goals and values.
Click on the picture above for some examples.
Please write a mission statement for:
Benefits of a meaningful mission statement:
1. It makes a commitment to the customer - what they can expect from the business.
Do you think this would be beneficial to the organisation?
2. Bringing the workforce together with a shared purpose.
If employees believe in the mission they are likely to work more collectively and the business will have a positive 'corporate culture'.
A 'vision' is likely to be linked to business aims - 'the things the business intends to do in the long run'.
Having written a 'vision' and identified what are thought to be appropriate aims then the senior managers and directors should focus on objectives.
If you were a director of McDonald's UK what objectives might you consider?
You might have said:
Profit levels / shareholder returns.
Should this be the most important objectives for directors of a public limited company?
Market share.
Creation of new products or ways of working.
Resource usage.
Increasing productivity.
Increasing ethical activities.
Why would it be a weakness to have company objectives worded as they are above?
They lack detail.
They need to be SMART.
Write some SMART objectives for McDonald's using the general examples above.
Case study: Ryanair:
Mission statement:
Ryanair’s mission is to maximise shareholder value through firmly establishing itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fare service.
Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.
Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.
What objectives could we produce for Ryanair for the 18/19 financial year?
When a business has identified appropriate objectives then each director will have to translate them into functional (departmental) objectives.
What business functions can you think of?
At least four please.
Critical appraisal of mission statements / corporate aims:
What does this video suggest about mission statements:
When a business has identified appropriate objectives then each director will have to translate them into functional (departmental) objectives.
What business functions can you think of?
At least four please.
Mission:
Put a man on the moon.
Objective:
Within 10 years build a delivery vehicle to allow two Americans to walk on the moon and return them safely to earth.
How the objective is translated into functional departments:
Negative views toward mission statements:
Mission statements are just 'words'.
Mission statements are not SMART.
Mission statements may be ignored at various levels of the organisation.
Random mission statement generator. Details here.
If objectives are not thought through or created with incorrect information then the result can be disastrous.
How business objectives may be changing:
Click on the picture:
Click on the picture:
