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Business_A-level_Edexcel

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  1. 1-marketing-and-people

    1-1-meeting-customer-needs
    3 主题
  2. 1-2-market
    5 主题
  3. 1-3-marketing-mix-and-strategy
    5 主题
  4. 1-4-managing-people
    5 主题
  5. 1-5-entrepreneurs-and-leaders
    6 主题
  6. 2-managing-business-activities
    2-1-raising-finance
    4 主题
  7. 2-2-financial-planning
    4 主题
  8. 2-3-managing-finance
    3 主题
  9. 2-4-resource-management
    4 主题
  10. 2-5-external-influences
    3 主题
  11. 3-business-decisions-and-strategy
    3-1-business-objectives-and-strategy
    4 主题
  12. 3-2-business-growth
    4 主题
  13. 3-3-decision-making-techniques
    4 主题
  14. 3-4-influences-on-business-decisions
    4 主题
  15. 3-5-assessing-competitiveness
    3 主题
  16. 3-6-managing-change
    3 主题
  17. 4-global-business
    4-1-globalisation
    5 主题
  18. 4-2-global-markets-and-business-expansion
    5 主题
  19. 4-3-global-marketing
    3 主题
  20. 4-4-global-industries-and-multinational-corporations
    3 主题
  21. 5-exam-technique
    5-1-the-exam-papers
    4 主题
  22. 5-2-business-studies-skills
    1 主题
  23. 5-3-structuring-your-responses
    5 主题
  24. 6-pre-release-preparation
    2025-pre-release-music-industry
    9 主题
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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

Pyramid diagram showing hierarchy: aims at the top, followed by mission statement, corporate objectives and functional objectives at the base.
The hierarchy of objectives shows how aims link to the mission statement and 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

Component

Explanation

Example

Aim

  • What the business is looking to achieve in the long term

  • Often expressed as an overall vision and describes the business’s reason for being

Macmillan Cancer Support: 

“To do whatever it takes to support people living with cancer”

Mission statement

  • An expression of a business’s overall aim as well as its core values and context

  • Informs the development of corporate and functional objectives

  • Often expressed in inspirational terms to provide direction and a common purpose for employees

Age UK:

“Making a positive difference by putting older people, and the people around them, at the heart of all we do; working with partner organisations to improve the quality of later life and provide effective, timely support for those who need it the most”

Corporate objective

  • The specific performance goals set by senior management for the business to achieve over time

  • Derived from the firm’s overall aim and mission statement

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

Mind UK:

“Provide 3m employees in low-paid sectors with workplace wellbeing support”

Functional objective

  • The day-to-day goals of functions or departments within the business, derived from corporate objectives

  • Functional objectives must be carefully aligned across departments so that all parts of the business are working towards the shared goal

Scope UK:

“Working with the Government and disabled people, we will create a Passenger Charter, an information resource to help disabled people find the information they need when using public transport”

SMART objectives

  • Corporate and functional objectives should be:

    • Specific

    • Measurable

    • Agreed

    • Realistic

    • Time-bound

An example of a SMART sales objective 

Text box stating an example of a SMART objective: "Increase the volume of annual subscription renewals by 12% during Q3 2023".
This objective is specific, measurable and time-related

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 new 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, 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

Examiner Tips and Tricks

When assessing the nature or effectiveness of the objectives for a specific business based on a case study provided, you should consider the following:

  • What is the purpose of the objectives?

  • Who is the intended audience?

  • How does the corporate strategy followed by the business compare to the mission in reality?

  • Who is the mission statement aimed at, and how does the strategy affect different groups?

Responses

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