Select your language

Suggested languages for you:
Log In Start studying!
StudySmarter - The all-in-one study app.
4.8 • +11k Ratings
More than 3 Million Downloads
Free
|
|

All-in-one learning app

  • Flashcards
  • NotesNotes
  • ExplanationsExplanations
  • Study Planner
  • Textbook solutions
Start studying

Corporate Mission and Objectives

Save Save
Print Print
Edit Edit
Sign up to use all features for free. Sign up now
Corporate Mission and Objectives

For many organisations, having clear vision and mission statements will not change anything. The vision and mission statements are a waste of time if they are nothing more than being written in annual reports. Nothing occurs by magic. In order to motivate employees to make an effort towards the organisation’s corporate mission and objectives, these statements have to be more than just a sign on the wall. Managers should show their employees by practice and by regularly communicating it to them. Let's take a look at the importance of an organisation's corporate mission and objectives.

Vision, Mission and Strategy

To find out the importance of these concepts, it is first important to understand exactly the difference between vision, mission, objectives and strategy.

A vision statement shows what an organization desires to accomplish in the longer run, usually in the time period of five-ten years or even at times longer.

A mission statement is described as an action-focused statement that states the rationale of an organization and the way they serve their customers.

At times this comprises what an organization does and its aims. It denotes a precision of the ‘what’, ‘who’ and 'why’ of an organisation. The mission statements are parameters by which an organization functions. Every task done in the organisation should work towards the accomplishment of the mission statement. It should provide a sense of direction to the employees and make sure that all the operating areas of the organisation are functioning together so that the same goal can be accomplished.

Influences on the mission of an organisation may comprise:

  • Purpose: This gives a reason for the existence of the business and could be what the founders wanted to accomplish when launching the business.

  • Values: This is what an organization has faith in. It is usually associated with ethics and the treatment of the organisation with its stakeholders.

  • Standards and behavior: This is how the organisation expects its workforce to behave. This is associated with the culture of the organisation. They are established by the higher management concerning what they want from employees with regard to work hours, dress code, and dealings with other employees.

  • Strategy: This is the short and long-run plans the organization required in achieving its goals.

Corporate objectives

Corporate objectives are defined as the goals of the organization that are created to provide a sense of direction and steer the actions of the organization.

Corporate objectives are the ones that are linked to the organization as a whole. They are generally decided by the top management of the organization and they present the focus for making more thorough objectives for the key operational activities of the organization. Corporate objectives are inclined to emphasize the desired performance and outcomes of the organization. It is essential that corporate objectives comprise a variety of main areas where the organization desires to accomplish instead of emphasizing a sole objective.

Corporate strategy

A strategy is a statement that depicts the way an organisation is going to accomplish something.

More precisely, a strategy is a distinctive approach to the way the organization is going to use its mission statement to attain its vision. Strategies are crucial for an organization to be successful as this is where an organization starts to outline a plan to do something. The greater the uniqueness of the organisation, the greater the creativity and innovation will be required to craft the strategies.

What is the difference between strategy and tactic?

Once the objectives are decided by the organization, next is the formulation of strategy and tactics. Strategic decisions tend to be medium or long-term. For instance, if the goal is to increase the market share to 25% by 2026, an organisation may choose a strategy to target new segments of the market. The tactical decisions tend to be short-run, for instance, employing an advertising campaign targeted at a particular market segment.

What are the examples of vision, mission, and strategy?

Apple Inc.

Apple Inc’s vision is

To make the best products on earth, and to leave the world better than we found it.

Apple Inc’s mission is

To bring the best user experience to its customers through its innovative hardware, software, and services.

Apple Inc’s general strategy is distinctive differentiation. This strategy emphasizes the main components that distinguish the organisation and its information technology products from its rivals. With this distinctive differentiation, Apple becomes prominent in the market. For instance, sophisticated design and user-friendly features of the product. This strategy establishes that Apple always aspires to stand out from its rivals not on the basis of price rather by competitive advantage because of its product design that fascinates the customers.

PepsiCo

PepsiCo’s mission statement for its consumers is

By creating joyful moments through our delicious and nourishing products and unique brand experiences.

PepsiCo’s vision statement is

Be the global leader in convenient foods and beverages by winning with purpose.

PepsiCo uses various competitive strategies, seeing the broad range of products offered by the organization. The main strategies include cost leadership and general differentiation. It applies cost leadership as its general strategy. This strategy emphasizes lowering costs as a way to enhance Pepsi’s financial performance and competition in general. For instance, in the competition with Coca-Cola, Pepsi gives lower prices because of low operating costs. It also at times offers special offers on its products. PepsiCo applies general differentiation as its secondary strategy. This strategy allows a competitive edge by drawing customers to some distinctive features of the products being offered. For instance, Pepsi’s Lay potato chips are promoted as a healthy snack product due to low saturated fat.

What are the internal and external influences on corporate objectives?

Both internal and external factors play a role in determining corporate objectives.

Internal influences on corporate objectives

  • The motivation of the senior executive: this is usually associated with the personality and leadership style. Ambitious leaders frequently set challenging goals and motivate their employees to accomplish them.

  • The financial situation of the organisation: when deciding the objectives, profitability and cash flow situation are vital factors to consider.

  • HR in terms of the quality and capability of primary staff: an organization will require exceedingly skilled and qualified managers for successful implementation of the strategy to accomplish objectives.

External influences on corporate objectives

  • Competition: This depends on the competitiveness of the market in which the organization is working. If an organization is competing with powerful rivals, then it may set fewer aspiring goals.

  • Variations in the tastes of the consumers: If the product/service of the organization becomes less popular, then it will have to set different goals, for example, to develop new products.

  • The economic environment: If an economy is thriving, then the consumers will have a greater sense of confidence and hence spend more. This can allow an organization to set more aspiring goals.

  • Stakeholder pressure: If the organization implements the short-term approach, it will have to set goals to maximize its profits so that the shareholders will be paid a higher dividend.

The relationship between an organisation’s vision, mission, strategy, and objectives

The main reason for strategic planning is to facilitate an organisation’s mission with its visions and objectives. With no mission and vision, a plan subsists in a vacuum, this is because the mission is the kickoff for a plan, the vision is the destination, and corporate objectives and strategic plan is the roadmap that assists the organization to steer from one to the other.

Differentiation between mission and objectives

Whilst the mission statement and its objectives appear to be substitutable, there is still a differentiation. On one side, the mission statement induces the organisation’s bigger views, and on the other side, the objectives are not that much subject to explanation and are reasonably more practicable than the mission statements. Effective mission statements are SMART:

Specific: a well-defined and brief description of the goals

Measurable: can be quantifiable

Attainable: they can be achieved/finished

Realistic: they are practical and can be achieved in rational assumptions

Timely: they are time-bound

In addition, it is observed that if there are no objectives then a mission statement cannot be accomplished, and also with no mission statement, objectives are purposeless. As a result of the complication of all the elements included in a mission statement, it is difficult to quantify and compare whilst objectives should be SMART. Therefore, objectives alone can not provide the organization’s comprehensive vision, it is the job of the mission and vision statements linked to it.

Strategy versus mission and corporate objectives

An organization’s strategy indicates the methods and processes it adopts to achieve its objectives and goals. Strategies describe in simple detail the actions that should be taken with the help of the resources and skills to achieve the goals in an efficient way. Similar to objectives, strategies can be quantified and present deadlines to ensure that objectives are attained on time.

The most lucrative organisations are usually constant in terms of mission, vision, corporate objectives, and strategies implemented to accomplish them.

Amazon is one of the most famous and reliable online retailers, it is popular for selling almost any type of product over the internet with remarkable speed and trustworthiness. Its revenues reached $80 billion in 2014 whilst it was launched in 1994. In order to achieve such an outcome required a vision, careful planning and strategy, higher standards of quality, and determined employees.

Mission, corporate objectives, and strategies are all pieces of a large puzzle forming an organization. Exercising them as separate parts can be adverse as they require interacting with the entire system so that it can work at its full potential. A mission statement is made from the vision and a strong mission statement is purposeless without a matching strategy, and a strategy needs objectives to be steered appropriately.

Corporate Mission and Objectives - Key takeaways

  • The vision and mission statements are a waste of time if they are nothing more than being written in annual reports.

  • A mission statement is described as an action-focused statement that states the rationale of an organisation and the way they serve their customers.

  • Influences on a mission may include purpose, values, standards and behaviour, and strategy.

  • Corporate objectives are defined as the goals of the organisation that are created to provide a sense of direction and steer the actions of the organization.

  • Internal influence on corporate objectives includes the motivation of the senior executive, financial position, and quality and capability of senior employees.

  • External influence of corporate objectives includes competition, changes in consumer tastes, pressure from stakeholders, and economic situation.

  • A strategy is a statement that depicts the way an organization is going to accomplish something.

  • Strategic decisions tend to be medium or long term and tactical decisions are short term.

  • Effective mission statements are SMART.

  • A mission statement is made from the vision and a strong mission statement is purposeless without a matching strategy, and a strategy needs objectives to be steered appropriately.

Frequently Asked Questions about Corporate Mission and Objectives

Every company has an overall corporate mission. This is related to its mission statement, which can be described as an action-focused statement that states the rationale of an organization and the way they serve their customers.

Every company has its own set of objectives based on its mission, projects, and tasks it aims to pursue. These individual objectives should also align with overall corporate objectives and corporate strategies.

A mission objective is a goal an organisation has set related to pursuing its mission. These can be smaller objectives, like decreasing labour turnover, or larger objectives, like increasing overall profitability, whereby both relate to the corporate mission of the company.

Corporate objectives are defined as the goals of the organization that are created to provide a sense of direction and steer the actions of the organisation. An example of an objective would be increasing the financial performance of the company.

There is no simple solution to writing business goals and objectives as they vary based on what the organisation is trying to pursue. However, goals and objectives should always follow the SMART framework; meaning they should be specific, measurable, attainable, realistic, and timely.

Final Corporate Mission and Objectives Quiz

Question

What is the definition of the vision statement of an organization?

Show answer

Answer

The bigger view of an organization’s ambitions

Show question

Question

What is a mission statement of an organization?


Show answer

Answer

All of the above

Show question

Question

 What are the corporate objectives?


Show answer

Answer

Steps to attain mission statement

Show question

Question

Why is corporate strategy important?


Show answer

Answer

Strategies are crucial for an organization to be successful as this is where an organization starts to outline a plan to do something.

Show question

Question

How long should a mission statement be?


Show answer

Answer

A mission statement should be a brief and precise statement of who your main customers are, classify the product/service being produced, organizations objectives, and priorities.

Show question

Question

 Who decides the corporate objectives in the organization?


Show answer

Answer

Corporate objectives are generally decided by the top management of the organization and they present the focus for making more thorough objectives for the key operational activities of the organization.

Show question

Question

How can mission statements be accomplished?


Show answer

Answer

In order to motivate the employees to make an effort towards the organization’s mission and objectives, these statements have to be more than just a sign on the wall. The managers should show their employees by practice and regularly communicate it to their employees.

Show question

Question

What does the mission statement denote?


Show answer

Answer

It denotes a precision of the ‘what’, ‘who’ and 'why’ of an organization.

Show question

Question

What is the main purpose of strategic planning?


Show answer

Answer

The main reason for strategic planning is to facilitate an organization’s mission with its visions and objectives.

Show question

Question

Which of the below statements are false?


Show answer

Answer

The mission statement and objectives are substitutable.

A mission statement can be accomplished with no objectives.

Show question

Question

What does SMART stand for?

Show answer

Answer

Specific, measurable, attainable, realistic and timely

Show question

Question

What is the link between mission, objective, and strategy?


Show answer

Answer

If there are no objectives then a mission statement cannot be accomplished, and also with no mission statement, objectives are purposeless. And a mission statement is made from the vision and a strong mission statement is purposeless without a matching strategy, and a strategy needs objectives to be steered appropriately.

Show question

Question

Why is it important to have objectives?


Show answer

Answer

If there are no objectives then a mission statement cannot be accomplished, and also with no mission statement, objectives are purposeless.

Show question

Question

What does a strategy indicate?


Show answer

Answer

An organization’s strategy indicates the methods and processes it adopts to achieve its objectives and goals.

Show question

Question

Should mission, objectives, and strategies be exercised separately?


Show answer

Answer

Mission, corporate objectives, and strategies are all pieces of a large puzzle forming an organization. Exercising them as separate parts can be adverse as they require interacting with the entire system so that it can work at its full potential.

Show question

Question

 Is SWOT analysis merely enough to make strategic plans?


Show answer

Answer

It is a simple tool to have an overview of the company's internal and external factors. An organization’s strategic plans need deep understanding to reach a certain decision with the help of other tools as well. Therefore, SWOT analysis alone cannot be the foundation of a strategic decision.

Show question

Question

What are internal and external factors?


Show answer

Answer

 Internal factors are those factors that the organization can control for instance: strength and weakness. External factors are those factors that the organization cannot control for instance: Opportunities and threats.

Show question

Question

 What are helpful and harmful factors?


Show answer

Answer

Helpful factors are those that support the success of the organization, for example: strength and opportunities. Harmful factors are those that hinder the success, for example: weakness and threats.

Show question

Question

What are some of the components that can be considered as strength?


Show answer

Answer

Financial strengths, developments in technology, human resource, etc.

Show question

Question

What are tangible and intangible threats?


Show answer

Answer

Tangible threats could be aggressive takeover propositions, new rivals, theft. Intangible threat could be prospective loss to reputation, brand detrimental factors, etc.

Show question

Question

With an example describe the factors which are in control of an organization?


Show answer

Answer

An organization has control over its internal factors such as strengths and weaknesses. Example: McDonald’s strength could be its increasing customer base in different countries and weakness is that there is no adaptation in meals according to the seasonal products.

Show question

Question

With an example describe the factors which are out of the control of an organization?


Show answer

Answer

An organization cannot control the factors presented by the external environment, therefore, sometimes it offers opportunities which an organization can take advantage of and at times threats. Example: McDonald availing the opportunity to expand in other countries and a threat could be more conscious customers about their healthy eating.

Show question

Question

Give another example of SWOT analysis?


Show answer

Answer

Example of an e-commerce business:

  • Strengths: Same day delivery within the city and high exposure of products to customers

  • Weakness: There is no monthly subscription option

  • Opportunities: Optimize the present mobile app for responsiveness and inbuilt feedback, larger target audience

  • Threats: Can operate at a loss to take rivals out of the competition

Show question

Question

Mention two benefits of SWOT analysis?


Show answer

Answer

Benefit: Simple to use and easy diagram to understand with no mathematical calculations and it’s greatly visual therefore makes it easier to convey it to the stakeholders.

Show question

Question

Mention two drawbacks of SWOT analysis?


Show answer

Answer

It doesn’t prioritize factors so it is difficult to allocate resources and it doesn’t present actionable solutions.

Show question

Question

Can SWOT analysis always lead to a strategy?


Show answer

Answer

SWOT on its own cannot result in a strategy. It is an analysis as well as a development tool.

Show question

Question

What could be the reasons that SWOT analysis might not lead to a strategy?


Show answer

Answer

Generally, the failure is due to two reasons: usually because of not comprehending what a strategy is, and employing SWOT incorrectly.

Show question

Question

Why should a company conduct SWOT analysis?


Show answer

Answer

It can be performed before initiating any plan or amending the existing plan. SWOT analysis can give an overview of the situation and an organization can better assess its present practices as well if they are benefiting or if the goals are being accomplished as planned.

Show question

Question

What are SWOT and PESTEL analysis used for?


Show answer

Answer

SWOT and PESTEL analysis are used to make efficient and thorough assessments of a new plan, project or business.

Show question

Question

How is the process of SWOT and PESTEL analysis helpful?


Show answer

Answer

The process presents enhanced awareness to decision-makers of the fluctuations that may arise and the consequences of the organization.

Show question

Question

A tool used to assess areas a business is strong, weak,  might face risks and gain opportunities is called....

Show answer

Answer

SWOT

Show question

Question

Strengths and weakness are used to analyse 

Show answer

Answer

Internal

Show question

Question

Opportunities and threats are used to analyse the...

Show answer

Answer

External

Show question

Question

Internal factors are factors the organisation can control such as strength and weakness

Show answer

Answer

True

Show question

Question

External factors are factors the organisation cannot control such as opportunities and weakness

Show answer

Answer

True

Show question

Question

Strength and opportunities are factors that ...... the organisation

Show answer

Answer

Support

Show question

Question

Weakness and threats are factors that are..... to the organisation

Show answer

Answer

Harm

Show question

Question

Examples of opportunities for an organisation are

Show answer

Answer

a. Latest social trends

Show question

Question

A strength of an organisation can be 

Show answer

Answer

a. Financial strength

Show question

Question

When would you advise a company to use SWOT analysis?

Show answer

Answer

aa. Before committing to any action

Show question

Question

The simplicity of SWOT analysis is ad advantage of using this tool 

Show answer

Answer

True

Show question

Question

SWOT has been criticised for not presenting actionable solutions

Show answer

Answer

True

Show question

Question

SWOT is an analysis tool and ......... tool

Show answer

Answer

a. Planning tool

Show question

Question

PESTEL is used to analyse external environment while SWOT is for both internal and external boys

Show answer

Answer

True

Show question

Question

An action-focused statement that states the rationale of an organization and the way they serve their customers is called ...

Show answer

Answer

mission

Show question

Question

A company can have more than one corporate objective. 

Show answer

Answer

True

Show question

Question

Every task done in the organisation should work towards the accomplishment of the ...

Show answer

Answer

mission statement

Show question

Question

The short and long-run plans the organization required in achieving its goals are referred to as...

Show answer

Answer

strategies

Show question

Question

Ethics and the treatment of stakeholders are embedded in a company's...

Show answer

Answer

value

Show question

Question

An advertising campaign targeted at a particular market segment is a ... decision. 

Show answer

Answer

strategic

Show question

More about Corporate Mission and Objectives
60%

of the users don't pass the Corporate Mission and Objectives quiz! Will you pass the quiz?

Start Quiz

Discover the right content for your subjects

No need to cheat if you have everything you need to succeed! Packed into one app!

Study Plan

Be perfectly prepared on time with an individual plan.

Quizzes

Test your knowledge with gamified quizzes.

Flashcards

Create and find flashcards in record time.

Notes

Create beautiful notes faster than ever before.

Study Sets

Have all your study materials in one place.

Documents

Upload unlimited documents and save them online.

Study Analytics

Identify your study strength and weaknesses.

Weekly Goals

Set individual study goals and earn points reaching them.

Smart Reminders

Stop procrastinating with our study reminders.

Rewards

Earn points, unlock badges and level up while studying.

Magic Marker

Create flashcards in notes completely automatically.

Smart Formatting

Create the most beautiful study materials using our templates.

Sign up to highlight and take notes. It’s 100% free.