Business
Study Notes
Relationships between functional objectives and strategies
- Level:
- AS, A Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
In the hierarchy of objectives, it is the corporate objectives which are the boss! These are the objectives that the business as a whole is trying to achieve.

In the hierarchy of objectives, it is the corporate objectives which are the boss! These are the objectives that the business as a whole is trying to achieve.
By contrast, functional objectives can be viewed as a willing servant of the corporate objectives! Their purpose in life is to help make possible the achievement of the corporate objectives. As such, functional objectives need to be:
- Consistent with corporate objectives (i.e. not work against them)
- Suitably focused on the key functional activities
Here are some examples of how corporate and functional objectives might work well together:
Corporate Objective | Example Functional Objective |
Increase sales | Successfully launch five new products in the next two years |
Reduce costs | Increase factory productivity by 10% by 2012 |
Increase cash flow | Reduce the average time taken by customers to pay invoices from 75 to 60 days |
Improve customer satisfaction | Achieve a 90% level of repeat business across major markets |
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