Analyse the importance of corporate objectives and departmental objectives to the success of a business.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. Corporate objectives: objectives that transfer mission and aims into clearer guidelines for management action at the business level.
2. [Importance of Corporate Objectives] ensure that each business unit is compatible with others in the business portfolio.
3. [Importance of Corporate Objectives] concerned with long-term business performance and priorities.
4. [Importance of Corporate Objectives] see that all sections of a business contribute to corporate success.
5. [Importance of Corporate Objectives] set the framework for departmental objectives.
6. [Corporate Objectives examples] corporate objectives in a single business company might include growth, profit maximisation, market share increase.
7. [Corporate Objectives examples] they are all overall strategic objectives.
8. Departmental objectives: each department of a business will be constrained by the corporate objectives and will set departmental objectives that will specifically support and sustain the corporate objectives.
9. [Importance of Departmental Objectives - examples] marketing may have a departmental objective to improve sales through more effective sales promotions.
10. [Importance of Departmental Objectives - examples] finance may have an objective of reducing long-term borrowing by 5% or reducing costs by 10%.
11. [Importance of Departmental Objectives - examples] operations may have an objective of introducing a new product each year.
12. Each functional department will develop functional level strategies that make processes and the value chain more efficient through clearly defined objectives and thus support and sustain the corporate objectives and the success of the business.
13. (7-8 marks) Good analysis of the importance of corporate and departmental objectives to the success of a business.
14. (5-6 marks) Some analysis of the importance of corporate and departmental objectives to the success of a business.
15. (3-4 marks) Some application of the importance of corporate and/or departmental objectives.
16. (1-2 marks) Understanding of business objectives.
17. (0 marks) No creditable content
18. [Reason for change] corporate objectives of a bank (if a PLC) might well be to maximise profits; grow; reduce the competition; develop new products/services; pay employees significant salaries/bonuses; expand into new markets; manipulate markets and ignore regulations.
19. [Reason for change] these objectives may change for a number of reasons: new government regulations may require significant change
20. [Reason for change] to curtail marginal potentially unethical activities so costs may increase.
21. [Reason for change] competition might increase from more ethical banks, credit unions; social enterprise.
22. [Reason for change] may be urged to pay more attention to small and medium enterprises.
23. [Reason for change] if a government has a shareholding, a bank may be required to withdraw from some highly profitable activities and pay more taxes or be subject to extra taxes.
24. [Reason for change] new senior managers may have different views on what the corporate objectives should be.
25. [Reason for change] the economy may change requiring a bank to play a more social role in pumping money into an economy through a more liberal lending policy.
26. Strong and evaluative answers will recognise that the corporate objectives of a bank may change as a result of internal and external forces and that banks that fail to be adaptive and flexible may well fail.
27. (9-12 marks) Effective evaluation of why a bank might change its corporate objectives over time.
28. (7-8 marks) Limited evaluation of why a bank might change its corporate objectives over time.
29. (3-6 marks) Analysis and some application of why a bank might change its corporate objectives over time.
30. (1-2 marks) Understanding of corporate objectives.
31. (0 marks) No creditable content.