Corporate Objectives 3.1.1

Business Objectives - is a goal set by a business, usually in the medium to long term. They can be set at any level of the business and can cover financial and non-financial issues important to the business's success

Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific)

Mission statement - is a short term statement of the company's vision and values which helps to set aims and objectives. This enables employees, managers and customers and possible some suppliers to understand the conduct of the business. It is a statement of purpose, such as 'grow our market share in the UK'. Nike's mission statement is; "To bring inspiration and innovation to every world athlete".

Aim - is a generalised statement of what the business plans to achieve in the longer term. A goal or purpose of the business for the future, to inspire a range of stakeholders, including employees and customers.

• Corporate objectives and aims are normally developed from the mission statement and are usually set by those at the top of the organisation, such as the board of directors.

• Corporate objectives relate to the business as a whole, whereas all objectives below this relate to only part of the business. All objectives must relate back to corporate objectives so that each level of the business is contributing to those objectives.

1. Specific - Objectives are aimed at what the business does 
2. Measurable - The business can put a value to the objective 
3. Achievable - Those employees who have responsibility for the objectives should have the resources and authority to allow them to have a realistic chance of being successful
4. Realistic -  The objective should be challenging, but it should also be able to be achieved by the resources available.
5. Time specific - There should be a time limit for when the objective should be achieved

Internal and external influences on Corporate Objectives 

Corporate objectives are influenced by a variety of factors that are within the control of management (internal) as well as factors that a business can do nothing about - except respond to them if significant (external)

Internal influences and External influences on Corporate Objectives
Internal	External
Business ownership – Who are the business owners and what do they want to achieve?	Economic environment – Perspective on key economic indicators such as economic growth, consumer spending and interest rates?
Attitude and Profit – Is the business run to earn profit or is it a non-profit?	Political/Legal environment – Impact of uncertainty about changes in the political and legal environment?
Ethical stance – Do ethics play a role in the business decision making?	Competitors – Do competitor actions and strategies shape what a business thinks it can achieve?
Strategic position and resources – What options does the business realistically have based on its existing market position and resources?	Social and Technological change – How rapid is the pace of social and technological change in a business’ markets? Does this make objective-setting and decision-making easier or harder?
Stakeholder influence – How influential are internal stakeholders?

What is the difference between Strategy and Tactics?

Strategy = How the business intends to achieve it objectives, usually long-term and made by seniot management.

Tactics = Support achievement of specific targets, usually routine and short-term and often deleagted by junior management.

Strategic Decision	Tactical Decision
External growth via takeover	Relocate staff from takeover HQ
Enter international market	Choose location in new market
Adopt cost minimisation strategy	Identify specific cost savings
Re-brand the business	Launch re-branding campaign
Close a major business unit	Determine detailed closure plan