The purpose of a business

Question 1

What does it mean to have a SMART objective?

Answer 1

Specific, Measurable, Attainable, Relevant, Timed

Question 2

What is the primary objective of a profit-making entity?

Answer 2

To maximise shareholder wealth

Question 3

What is the primary objective of a not-for-profit entity?

Answer 3

Maximise the benefit to the target stakeholder

Question 4

Which model do we use for stakeholder mapping?

Answer 4

Mendelow’s power-interest stakeholder matrix

Question 5

According to Mendelow’s power-interest stakeholder matrix, how do we treat those with low interest and low power?

Answer 5

Minimal effort can be directed

Question 6

According to Mendelow’s power-interest stakeholder matrix, how do we treat those with low interest and high power?

Answer 6

Keep satisfied

Question 7

According to Mendelow’s power-interest stakeholder matrix, how do we treat those with high interest and low power?

Answer 7

Keep informed

Question 8

According to Mendelow’s power-interest stakeholder matrix, how do we treat those with high interest and high power?

Answer 8

These are key players - need participation