business objectives and stakeholder objectives Flashcards
what is the meaning of business objectives
aims or targets that a business works towards
why do we need business objectives
gives workers clear target which motivates ppl
decisions will be focused on objectives
unite business towards same goal
able to compare business
what are the 5 types of business goals
survival, profit, returns to shareholder, growth and market share
what is the obj of survival and who wld aims for it
focus on cost management and sale revenue
either for new start ups or business in new market
what is the profit
total income of a business (revenue) less total cost
what is the use of aiming for profit
to pay a return to owners of business for capital and risk taken
to provide finance for further investment
why do business aim to returns to shareholders
to discourage shareholders from selling their shares
what are the 2 ways in which a business can increase their returns to shareholders
increase profit and share of profit
increase share price- make more profit or plan of business to grow
how is growth measure
value of sales or output
why do stakeholders want to measure growth
make jobs more secure if business is larger
increase salaries and status of managers
open up new possibilities and help spread risk of business by moving into new products and markets
obtain higher market share from growth in sales
obtain cost advantage
what is market share
percentage of total market sales held by one brand or business
how to calculate market share
company sales/ total marker sales x 100
how can increase in market share help a business
good publicity
increased influence over suppliers
increased influence over customers
what is a social enterprise
they hv social objectives as well as an aim to make a profit to reinvest back into the business
what are the 3 main objectives a social enterprise have
social: provide jobs and support the disadvantaged grps in society
environmental: to protect the environment
financial: to make profit to reinvest lack into social enterprise to expand the social work that is performs
what are the objectives of public sector
financial: meet profits set by government, profit is either reinvested back or handed to gov
service: provide service to public and meet quality targets
social: protect or create employment in certain areas
what is a stakeholder
stakeholders are people or a grp with a direct interest in the performance and activities of a business
what are the internal stakeholders
owners, workers and managers
what is the objectives of the owners
growth of business so value of investment increases
share of profits’ they gain a rate of return on the money put into the business
what is the objectives of workers
regular payment, contract of employment, job security and satisfaction
what is the objectives of managers
high salaries , job security, growth to get more status and power
what are the external stakeholders
customers, government, whole community and banks
what are the objectives of customers
safe and reliable products , value for money, well designed products of good quality, reliability of service and management
what are the likely obj of gov
expect business to follow law
wants bus to be successful more jobs, pay taxes and increase country output
