Organisational objectives 3 On completing this chapter you should be able to: Know and understand

diversification:
the process 
of selling different, unrelated 
goods or services in 
new
markets
ACTIVITY 1.3.9
CAFFÈ NERO AND ASDA – CONTRASTING STRATEGIES TO ACHIEVE GROWTH
Although both companies have similar objectives – sales growth, leading to profitability – 
Caffè Nero and Asda present an interesting contrast in business strategy. The coffee-bar 
operator is going for market development. Gerry Ford, Caffè Nero’s chairman, has set a 
target of 100 branches to be opened in Turkey. He said that he was ‘also looking around 
Europe and scouting out China’. He is confident of success in Turkey. He has appointed 
Isik Asur, a Harvard Business School graduate, who used to run the Starbucks operation 
in the country. He knows all about the changing consumer tastes in the country as well as 
the political, social and economic environment there.
Asda – the number-two supermarket chain in the UK – has decided on the strategies of 
market penetration and product development to build sales growth. New food stores 

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Organisational objectives
59
OVER TO YOU
Revision checklist
1. 
Differentiate clearly, with examples, between mission 
statements and vision statements.
2. 
What are often considered to be the practical limitations of 
mission statements?
3. 
State 
four
factors that would help to ensure that corporate 
objectives are effective in assisting a business to achieve 
its
aim.
4. 
Give an example of a SMART objective that could be set for 
your school or
college.
5. 
Explain, with 
two
examples, what corporate objectives a car 
manufacturing business could establish.