23-01-2012

1
Corporate aims,
Corporate objectives
and Corporate
strategy
Corporate aims
Long term targets of a business often found in
mission statement
Tend to be qualitative
Provides a direction for the business
Inform corporate objectives and strategies
Performance can be measured against these aims
E.g. To become the worlds leading airline
Corporate objectives
Medium and long term targets of a business
that give a sense of direction to the managers,
departments and the organization as a whole.
They should be measurable and have a
specific timeframe
Expressed in quantitative terms
E.g. Increase sales by 5% by June 2009,
increase market share in Africa by 12% in the
next three years
Coordinate functional areas with in the
business
Objectives should be SMART:
23-01-2012
2
Main functions of objectives
A clear statement of what needs to be
achieved
A focus for all activity
Targets for individual and group
achievement
A means of measuring performance
How objectives can be used
Implement the mission
Provide a clear focus for decision making
Provide a target
Motivate employees
Facilitate control of actual performance
Provide a criteria for evaluating performance
Reduce uncertainty
Provide a sense of unity
Corporate strategy
Art & science of formulating, implementing,
and evaluating, cross-functional decisions
that enable an organization to achieve its
objectives.
Detailed plan for achieving the corporate
objective.
The plan would include details of not only
what is to be done but also the financial,
production and personnel resources required.
Corporate Aims
The long term targets and plans to fulfil the
mission statement
Corporate Objectives
The medium to long term quantifiable targets to
fulfil the mission statement
Corporate Strategy
The actions to be taken by the business to
achieve
Mission Statement
The overall reason for the business existence