Chapter 1.5 Business And Stakeholder Objectives

Question 1

Business objectives

Answer 1

Aims or targets that a business work towards

Question 2

Why do we need business objectives

Answer 2

• increases motivation
• decision making is less time consuming
• reduces conflicts

Question 3

Objectives for businesss(businesses objectives will change depending on market situations of company)

Answer 3

• survival
• profit(to pay a return to shareholders/provide finance for further investment in business)
• growth (measured by value of sales/output)/higher market share
• market share( company sales/total market sales x 100) (in comparison with whole industry )(increases publicity /influence over customers and suppliers)
• providing service to community (for social enterprise companies -not public sector)(social objective)

Question 4

Social enterprise companies objectives

Answer 4

• social (provide jobs for disadvantages ppl)
• protect environment
• financial to gain profit and invest back to enterprise to expand

Question 5

Stakeholder(external +internal stakeholder)

Answer 5

Any person with a direct interest in the performance and activities of a business

Question 6

Owners/shareholders (internal -groups that work/own business )

Answer 6

• puts capitals to expand business
• take share of profits
• may lose money they invested
• risk takers

Question 7

Objective of owners/shareholders

Answer 7

• share of profits

- growth of business (more profit and can invest more)

Question 8

Workers (internal stakeholder)

Answer 8

-ppl employed by business

Question 9

Workers objectives

Answer 9

• regular payment
• job security
• job statisfgication

Question 10

Managers(internal stakeholder)

Answer 10

Employees that control work of others , making business decisions

Question 11

Manager objectives

Answer 11

• Job security
• higher salaries(they have more skill/effort)
• business growth / increases reputation (controlling a big company)(self esteem)

Question 12

Customers (external stakeholder-ppl outside business)

Answer 12

Purchase and consume goods or services

Question 13

Customers objectives

Answer 13

• safe and reliable products

- well designed products (value for money)

Question 14

Government (external stakeholder)

Answer 14

Protect weorkers and customers from business activities for economy of country

Question 15

Government objectives

Answer 15

• business growth to benefit economy of country and employment rate
• ensuring firm stays within rules and regulations
• to receive taxes

Question 16

Banks(external )

Answer 16

-provide financial help for business operation

Question 17

Bank objective

Answer 17

-expect business to repay plus the interest

Question 18

Community(external)

Answer 18

Third party affected by business activities

Question 19

Community objectives

Answer 19

• have job opportunities

- no harm to environment

Question 20

Objectives for public sector businesses

Answer 20

• financial(profit to reinvest back to business) to help society
• service
• social objectives , aid community(employment/goods/services in cheap price_
• help economy (increases GDP-size of economy) to increase living standard , decrease unemployment

Question 21

Conflicts of stakeholder objectives.

Answer 21

If satisfy one stakeholder objective , other stakeholder objective goes unfulfilled (as diff stakeholder have diff objectives)