Business objectives and stakeholder objectives

Question 1

Business objectives

Answer 1

are the aims or targets a business works towards

Question 2

Pros of setting up objectives

Answer 2

• Motivates workers and managers as they have a clear target to achieve
• Taking decisions could be focused on “will this help achieve our objectives”
• Helps unite the whole business towards the same goal
• Can compare and see the progress of the business

Question 3

Most common objectives (private sector businesses)

Answer 3

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

Question 4

Profit

Answer 4

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

Question 5

Market shares

Answer 5

is the percentage of total market sales held by one brand or business.

Question 6

Market share formula

Answer 6

(company sales/total market sales) x 100

Question 7

Social Enterprise

Answer 7

has social objectives as well as an aim to make a profit to invest back into the business

Question 8

Stakeholder

Answer 8

is any person or group with an direct interest in the activities and performance of the business