Chapter 5 Business and Stakeholder objectives Flashcards
def for business objectives
Certain goals a business sets in order to achieve
Examples of business objectives (name 3)
Growth (Profit, sales, reduce cost, etc) Market share Capital Environmental objectives employee motivation survival returns to shareholders
Market share % formula
Company sales/total market sales * 100
Market share definition
The percent of the total market sales held by one brand or business
Stakeholders
Any person with any kind of interest in a business
What are the two types of stakeholders
Internal
External
Conflict of stakeholder objectives
Different stakeholders may have different objectives for the business which may conflict with each other
Objective of owners and shareholders
Financial growth and growth of the company
Rewards for owners
profits
Rewards for shareholders
Dividends
Objectives of employees
Performance - job security
Money
Objectives of management
Growth of the company
Reputation of the company
Keeping employees motivated
Who are internal stakeholders
employees, management, owners, and share holders
Who are external stake holders
Governments, Banks, customers, community
Customers’ objectives
Good quality
High value for money
Good customer service
