Corporate objectives
Mission statement:
This is a short way for a business to express their main intent
Sets out the purpose and primary objective of the business in the present
Should be inspiring and memorable
Looks towards the future of the business
Uses of mission statements
Focus
o Can create high levels of focus and can give the business direction
Identity
o Creates a sense of identity for the business and helps establish a position
in the market
Profitability
o Creates profitability, as employees biome more motivated due to the fact
that the business has strong corporate values, that are reflected in the
mission statement
o Employees become aware that their job has a more significant purpose
beyond tasks or duties.
Limitations of mission statements
Can be unrealistic and overoptimistic
Can be a waste of management time and resources
Can lead to conflicts and inconsistencies when not followed properly, leading to a
damaged brand image
Can be ambiguous (Hard to understand)
Can become obsolete as the business develops(mainly technologically, or socially, or a
merger/change of product)
Corporate objectives
This is what the business aims to achieve/specific goals of the business that are
realistic, achievable and measurable in time.
Flows from the mission statement
Usually set by senior management
Aimed at satisfying shareholders
Therefore these objectives are related to profits, and/or dividends
Department functional objectives
Each department in a business sets their own objectives. (sales, marketing HR, finance,
etc)
Should flow from the corporate objectives
S.M.A.R.T Objectives
Specific
, o Must be a clear definition, often includes a number
Measurable
Achievable
Realistic
Time related
o Means setting a date for time or review
Corporate theories
Ansoff’s matrix
Existing Product / Service New Product / Service
Existing Market penetration ( low risk ). Product development ( moderate
market Increasing sales in an existing risk ).
market New product/service developed
Sell more to the same for existing market
customers, encouraging them to Research and development of
order more often through new products to sell to old
specified promotion. customers.
Ie: Loyalty schemes, rewards Ie: apple introducing the ipad
programs, cashback, etc. expanding from the iphone
New Market development ( Moderate Diversification ( High Risk ).
market risk ). New product / service sold in a
Existing product / service sold to new market.
a new market Ie: an acquisition of a business
IE: airline company expanding by another business, like coca
locations, or a retail business cola acquiring costa coffee.
opening up a new branch in a
foreign area.
Uses of Ansoff’s Matrix:
Businesses can analyze the use of the matrix to plan out future expansions.
o This can be achieved by identifying all current products/services in the market,
evaluating performance and making informed business decisions based on them.
Risk assessment
o Allows the business to understand the level of risk associated with each strategy.
o Ie: market penetration is less risky than diversification.
Easy to understand
o Visualizes the format and is easy to interpret
o Improving the speed of decision making.
Limitations of Ansoff’s Matrix:
Oversimplification
o It is very simple and only shows a part of the
picture.
o Large PLC’s will need much more analysis than just a simple matrix in order to
make key business decisions.
o Cannot put over reliance on the matrix
Mission statement:
This is a short way for a business to express their main intent
Sets out the purpose and primary objective of the business in the present
Should be inspiring and memorable
Looks towards the future of the business
Uses of mission statements
Focus
o Can create high levels of focus and can give the business direction
Identity
o Creates a sense of identity for the business and helps establish a position
in the market
Profitability
o Creates profitability, as employees biome more motivated due to the fact
that the business has strong corporate values, that are reflected in the
mission statement
o Employees become aware that their job has a more significant purpose
beyond tasks or duties.
Limitations of mission statements
Can be unrealistic and overoptimistic
Can be a waste of management time and resources
Can lead to conflicts and inconsistencies when not followed properly, leading to a
damaged brand image
Can be ambiguous (Hard to understand)
Can become obsolete as the business develops(mainly technologically, or socially, or a
merger/change of product)
Corporate objectives
This is what the business aims to achieve/specific goals of the business that are
realistic, achievable and measurable in time.
Flows from the mission statement
Usually set by senior management
Aimed at satisfying shareholders
Therefore these objectives are related to profits, and/or dividends
Department functional objectives
Each department in a business sets their own objectives. (sales, marketing HR, finance,
etc)
Should flow from the corporate objectives
S.M.A.R.T Objectives
Specific
, o Must be a clear definition, often includes a number
Measurable
Achievable
Realistic
Time related
o Means setting a date for time or review
Corporate theories
Ansoff’s matrix
Existing Product / Service New Product / Service
Existing Market penetration ( low risk ). Product development ( moderate
market Increasing sales in an existing risk ).
market New product/service developed
Sell more to the same for existing market
customers, encouraging them to Research and development of
order more often through new products to sell to old
specified promotion. customers.
Ie: Loyalty schemes, rewards Ie: apple introducing the ipad
programs, cashback, etc. expanding from the iphone
New Market development ( Moderate Diversification ( High Risk ).
market risk ). New product / service sold in a
Existing product / service sold to new market.
a new market Ie: an acquisition of a business
IE: airline company expanding by another business, like coca
locations, or a retail business cola acquiring costa coffee.
opening up a new branch in a
foreign area.
Uses of Ansoff’s Matrix:
Businesses can analyze the use of the matrix to plan out future expansions.
o This can be achieved by identifying all current products/services in the market,
evaluating performance and making informed business decisions based on them.
Risk assessment
o Allows the business to understand the level of risk associated with each strategy.
o Ie: market penetration is less risky than diversification.
Easy to understand
o Visualizes the format and is easy to interpret
o Improving the speed of decision making.
Limitations of Ansoff’s Matrix:
Oversimplification
o It is very simple and only shows a part of the
picture.
o Large PLC’s will need much more analysis than just a simple matrix in order to
make key business decisions.
o Cannot put over reliance on the matrix
