Corporate Objectives (Edexcel A Level Business): Revision Note

Developing corporate objectives

• Aims and objectives serve as a guide for a business's overall strategy and direction, helping to focus efforts and resources towards a common purpose

• There is a hierarchy of objectives that cascades downwards

The hierarchy of objectives

• A business's mission flows from its overall aim and is usually expressed in inspirational terms

• From this mission, corporate objectives and functional objectives that detail the achievable goals a business wants to meet over a specified period are developed

Components of the hierarchy of objectives

SMART objectives

• Corporate objectives are quantifiable, allowing a business to determine when and to what extent they have been achieved

  • Achieving objectives contributes towards meeting the overall business aim

  • Objectives may focus on achieving specified levels of market share, profit, sales growth or new product/market development

• Corporate and functional objectives should be

  • Specific

  • Measurable

  • Agreed

  • Realistic

  • Time-bound

Example SMART sales objective

Increase the volume of annual subscription renewals by 12% during Q3 2026

• This objective is specific as it relates to annual subscription renewals

• It is measurable as a percentage increase is given

• We must assume that it is agreed and realistic

  • Gaining the agreement/buy-in of key stakeholders and ensuring it is something the business can achieve

• It is time-related as it is targeted to be achieved by Q3 2026

Critical appraisal of mission statements and corporate aims

• Businesses need to critically assess whether corporate aims and mission statements continue to reflect their current corporate vision

  • The content and expression of business aims will likely change over time to reflect changing social attitudes and norms

  • For example, Apple’s mission statement - "to make the best products on earth, and to leave the world better than we found it" - emphasises its commitment to sustainability, a key social trend

• Mission statements are sometimes criticised as being little more than an exercise in public relations that does little to inform objective-setting or promote a common organisational goal

  • For example, in 2013, KFC’s mission was "To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers" - but in the same year, it launched a burger that replaced the bread bun with extra layers of deep-fried chicken

• Businesses should decide whether changes to the corporate aim or mission statement need to be made by considering whether:

  • The short- to medium-term strategies adopted by the business support the aim and mission

  • The aim and objectives are realistic and achievable in the current trading environment

  • The mission statement message communicates the aim of the business effectively to stakeholders

• Revising the business aim and revisiting the mission statement should be seen as a natural step for growing businesses

  • It is a chance to involve a variety of stakeholders (opens in a new tab), including workers and suppliers, in determining the direction of the business

  • Newly identified opportunities and threats can be acknowledged

  • Sharing refreshed priorities, particularly with the media, can generate positive publicity