Corporate objectives and mission statements

Mission, aims and objectives

• A mission statement is a short, qualitative statement of the purpose and values of a business: why it exists and what it stands for.
• Corporate aims are the long-term, broad intentions of the whole business (for example, to be the most trusted brand in its market).
• Corporate objectives are specific, measurable targets set to achieve the aims, usually over a stated time (for example, increase market share from 12% to 15% within three years). Good objectives are often described as SMART: specific, measurable, achievable, realistic and time-bound.
• Corporate objectives are then broken down into functional objectives for marketing, operations, finance and human resources, and into strategies and tactics.

The hierarchy

Each level gives direction to the one below it.

Why have a mission statement?

• Gives employees a shared sense of purpose, which can motivate and guide decisions where there is no rule.
• Communicates the values of the business to customers, investors and other stakeholders, which may build trust and the brand.
• Provides a reference point for setting objectives and judging strategies: does this decision fit our mission?

Critical appraisal of mission statements

The specification asks you to judge mission statements critically:

• Many are vague and generic ('to delight our customers'), so they give little real guidance.
• They may be written for public relations rather than to steer behaviour; the test is whether actual decisions match the words.
• Staff may not know or believe the statement, especially if managers do not act on it.
• A statement that ignores some stakeholders can cause conflict, for example if it stresses low prices while staff are expected to accept low pay.
• They cannot be measured, which is why measurable objectives are needed alongside them.

In the October 2024 WBS13 paper, Question 1(d) asked candidates to assess the effect of a mission statement on stakeholders, a 12-mark question.

Worked example

A budget airline's mission statement says it aims 'to offer the lowest fares while putting passenger comfort first'. Appraise this statement.

1. Positive: it tells staff and customers what the airline stands for and gives a reference point for decisions.
2. Weakness: the two aims may conflict, since the lowest fares usually need tight seating and few extras, so staff may not know which to prioritise.
3. It is not measurable, so it needs objectives such as 'average fare 10% below the nearest rival' and 'customer satisfaction score of at least 80%'.
4. Its value depends on whether managers' decisions actually match it.

Answer: Useful for direction and image, but internally inconsistent and unmeasurable; it only matters if decisions follow it.

Check yourself

1. Which of these is the best description of a mission statement?
   • A numerical target for next year's sales
   • A detailed plan for one department
   • A financial statement showing profit
   • A qualitative statement of the purpose and values of a business
   Show answer

   A qualitative statement of the purpose and values of a business. A mission statement is about purpose and values, not numbers.

2. Which of these is written as a corporate objective rather than an aim?
   • Be the best-loved brand in the country
   • Increase revenue by 8% a year for the next three years
   • Treat every customer with respect
   • Make the world a better place
   Show answer

   Increase revenue by 8% a year for the next three years. It is specific, measurable and time-bound.

3. In the usual hierarchy, which comes directly below corporate objectives?
   • The mission statement
   • Corporate aims
   • The vision
   • Functional objectives
   Show answer

   Functional objectives. Corporate objectives are broken into departmental (functional) objectives.

4. Which is the strongest criticism of a mission statement?
   • It is so vague that it gives no real guidance to decisions
   • It is too short to read
   • It is written by senior managers
   • It is published on the website
   Show answer

   It is so vague that it gives no real guidance to decisions. Vagueness means it cannot steer behaviour or be measured.

5. In SMART objectives, what does the T stand for?
   • Tactical
   • Targeted
   • Time-bound
   • Tested
   Show answer

   Time-bound. Objectives should have a deadline.

6. Explain one benefit to a business of having a clear mission statement.
   Show answer

   It gives employees a shared sense of purpose so they understand what the business is trying to achieve, which can guide their decisions and improve motivation.. Say who benefits, what the statement gives them and the result.

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Sources

• Pearson Edexcel International Advanced Subsidiary/Advanced Level in Business specification (XBS11/YBS11, 2018), Unit 3 Business decisions and strategy and Appendices 6, 7 and 9
• Pearson Edexcel IAL Business WBS13/01 mark scheme, October 2024

Last updated 8 November 2026. Spotted a mistake? Tell us.