1.5 Business objectives and stakeholder objectives

Question 1

define business objectives

Answer 1

• what a business wants to achieve

- the aims and goals of a business

Question 2

need & importance of business objectives

Answer 2

• provide clear end purposes towards which to work
• enable everyone involved in a business to focus on these purposes
• make it possible to check on progress and to make improvements

Question 3

Objectives of a business

Answer 3

• profit (main)
• growth: sales growth, market share, size, dividends
• survival: keep going, ex: brand new small businesses
• provide a service: keep customers happy, win awards, good reputation

Question 4

define social enterprises

Answer 4

an enterprise that is set up to achieve objectives which relate to meeting the needs of society or the environment, sometimes referred to as ‘not-for-profit’ organisations

Question 5

Objectives of social enterprises

Answer 5

• environmental: to improve the eco-friendly approach of people or businesses
• financial: to make a profit and invest in good projects and initiators
• social: provide jobs and support for the disadvantaged groups in society

Question 6

Define stakeholder

Answer 6

A stakeholder is someone who has an interest in the decisions taken by the business

Question 7

Main internal stakeholder groups

Answer 7

owners & employees

Question 8

Main external stakeholder groups

Answer 8

• customers
• suppliers
• local and national communities
• governments
• pressure groups
• trade unions
• employers’ associations

Question 9

Objectives of different stakeholder groups

Answer 9

• owners: share of profit increasing, and the value of their business rising
• employees: security of employment, promotion opportunities and good rewards
• customers: wants a company to produce high-quality, value-for-money products
• ## suppliers: want steady orders and prompt payment; want to feel valued by the company that they supply