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Study Notes

Corporate objectives

Level:
AS, A Level
Board:
AQA, Edexcel, OCR, IB
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Corporate objectives are those that relate to the business as a whole. They are usually set by the top management of the business and they provide the focus for setting more detailed objectives for the main functional activities of the business.

This can be illustrated as follows:

Corporate objectives tend to focus on the desired performance and results of the business. It is important that corporate objectives cover a range of key areas where the business wants to achieve results rather than focusing on a single objective.

Peter Drucker suggested that corporate objectives should cover eight key areas:

Area Examples
Market standing Market share, customer satisfaction, product range
Innovation New products, better processes, using technology
Productivity Optimum use of resources, focus on core activities
Physical & financial resources Factories, business locations, finance, supplies
Profitability Level of profit, rates of return on investment
Management Management structure; promotion & development
Employees Organisational structure; employee relations
Public responsibility Compliance with laws; social and ethical behaviour
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