business objectives and stakeholders Flashcards
why are business objectives important
- sets clear target to work towards and focus on
- helps in motivating workers
- all decisions are bound by a common goal
- helps measuring business success
why business survival
- established with the aim that they will survive for eternity
- may feel threatened by competition or recession
- may have to make tough choices like lowering prices and profit
why profit
- pays off necessary expenses like wages, interest, rent tax
- helps survival of a business
- return to owners for their risk
- provides finance for expansion
why return to shareholders
- need to increase this so the investment stays intact
- increased profits mean higher dividend
- increased share price help to control the market, increase chance of higher profits and incomes
why growth
- increases job security
- increases salary
- economies of scale
why market share
- increased publicity
- influences suppliers and customers
formula for market share
company sales over period of time/total sales of market or industry over period of time x 100
why financial
- meet profit targets set by government
- reinvest money back into business or give to government
why service
- provide service to public
- meet quality target set by government
why social
- protect or create employment in certain areas or for certain underprivileged groups
owners objectives
(internal)
- growth of business
- share of profits to gain return of capital
managers objectives
(internal)
- high salaries
- job security
- growth of business
- status and power
workers objectives
(internal)
- regular payment
- contract of employment
- job security
- satisfaction and motivation
customers objectives
(external)
- safe and reliable products
- value for money
- well designed products
- good quality
- reliable service and maintenance
government objectives
(external)
- succeed in country
- stay within laws
- employment
-taxes
- increased output
