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Study Notes

Internal and External Influences on Corporate Objectives

A-Level, IB, BTEC National
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 17 Nov 2022

A range of factors will influence the choice and achievement of corporate objectives.

Internal Influences on Corporate Objectives

Business Ownership - who are the business owners and what do they want to achieve?

Attitude to Profit - Is the business run to earn profits or it is not-for profit?

Ethical Stance - Do ethics play a role in a business’ decision-making?

Organisational Culture - How is the business structured? How are objectives set and decisions taken?

Leadership - How strong is the influence of leadership in the business in terms of objectives and how decisions are made?

Strategic position & resources - What options & choices does the business realistically have based on its existing market position & resources?

Stakeholder influence How influential are internal stakeholders?

External Influences on Corporate Objectives

Short-termism - External investor pressure to focus on and achieve short-term objectives at the expense of long-term strategy?

Economic environment - Perspective on key economic indicators such as economic growth, consumer spending & interest rates?

Political / legal environment - Impact of uncertainty about changes in the political & legal environment?

Competitors - Do competitor actions & strategies shape what a business thinks it can achieve?

Social & Technological change - How rapid is the pace of social & technological change in a business’ markets? Does this make objective-setting & decision-making easier or harder?

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