Corporate Mission and Objectives

Corporate objectives

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

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?

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.

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.