Business objectives and stakeholder objectives 1.5

Question 1

What are business objectives and what is the need and importance

Answer 1

Business objectives are aims or targets a business works towards
It is important because:
Gives workers clear goal to work towards and helps motivate
Decisions will be focused on achieving the objective
Can see if business if successful or not by seeing if they achieved the objective

Question 2

What is aim of business survival

Answer 2

When a new business is set up the objective of a businesses main concern will be survival

Question 3

What is the aim for profit

Answer 3

Pay return to owners of business for capital invested

Provide finance for future investments in the business

Question 4

What is the aim of returning to shareholders

Answer 4

Managers set an objective of returning to shareholders to discourage them from selling shares to help managers keep their job. This can be done by increasing profit paid to shareholders

Question 5

What is the aim of growth

Answer 5

Make jobs more secure if business is larger
Increase salaries to manager as the business expands
Help spread risks of the business

Question 6

What is market share

Answer 6

Market share is the percentage of total market sales held by one brand or business.
Example:Amount of tractors sold 100, Company A sold 60 therefore Company A market share is 60 percent

Question 7

What is the aim of market share

Answer 7

Good publicity as they could claim themselves the most popular if they have a higher percentage of market share.
Increase influence over suppliers,Suppliers keen to sell to larger businesses

Question 8

What is a social enterprise

Answer 8

Social enterprises has social objectives as well as an aim to make a profit to reinvest back into a business.

Question 9

What is the aim of an social enterprise

Answer 9

Provide jobs and support for disadvantages groups such as disabled or homeless

Question 10

What are all the internal stakeholder groups

Answer 10

Owners
Workers
Managers

Question 11

What are the objectives of an Owner

Answer 11

Share of the profits so they gain a rate of return on money put into the business
Growth of business so value of investment is increased

Question 12

What are the objectives of Workers

Answer 12

Regular payment for work

Job security-Being able to keep their job for a good amount of time

Question 13

What are the objectives of managers

Answer 13

Growth of business so managers can control a bigger business giving more status and power
High salaries due to the important work that is done

Question 14

What are the external stakeholder groups

Answer 14

Customers
Government
Whole community
Banks

Question 15

What are the objectives of customers

Answer 15

Buying safe and reliable products

Good value for money

Question 16

What are the objectives of the government

Answer 16

Expect all firms to abide by the law

Want business to succeed in its country

Question 17

What are the objectives of a whole community

Answer 17

Jobs for working population

Production that does not damage the enviroment

Question 18

What are the objectives of banks

Answer 18

Expects business to pay interest and repay capital lent

Question 19

How do stakeholders objectives conflict

Answer 19

When one stakeholder objective could be affected by another stakeholder objective
There could be a cheap method of production set up by managers but then cause more pollution for the whole community which is a conflict

Question 20

What are the differences of objectives between public and private sector businesses

Answer 20

Public sector main aim is the financial target aimed by government and provide services to public and meet quality targets set by government. Increase and protect employment in certain areas especially poor regions

Private sectors main aim is to make profit and growth of the business. To also provide service to public and increase market share and survival of the business