1.5 Business Objectives + Stakeholder Objectives

Question 1

Define business objectives

Answer 1

The aims or targets that a business works towards

Question 2

Explain different business objectives

Answer 2

• business survival
• profit
• returns to shareholders
• growth of the business
• market share
• service to the community

Question 3

Explain reasons for business objectives

Question 4

Define profit

Answer 4

The total income of a business (revenue) less total costs

Question 5

Define market share

Answer 5

The percentage of total market sales held by one brand or business

Question 6

Define social enterprise

Answer 6

Has social objectives as well as an aim to make a profit to reinvest back into the business

Question 7

Explain main objectives of social enterprises

Answer 7

Social - provide jobs + support disadvantaged groups in society
Environmental - protect environment
Financial - make profit to invest back into the social enterprise

Question 8

Explain internal stakeholder groups with examples

Answer 8

Groups that work for or own the business
E.g. owners, managers, workers

Question 9

Explain external stakeholder groups with examples

Answer 9

Groups outside of the business
E.g. customers, government, community, banks

Question 10

Explain objectives of different stakeholder groups

Answer 10

Owners: profit, growth
Workers: job security + motivation, payment
Managers: job security, growth, high salaries
Customers: reliability, value for money
Government: success, follows laws
Community: jobs, environmentally/ socially responsible products
Banks: interest

Question 11

Explain conflicts between stakeholder group objectives with examples

Question 12

Explain objectives of public sector enterprise

Question 13

Explain differences between public sector enterprise objectives and private sector enterprise objectives