UNIT 1 - Chap 5: Business objectives and stakeholder objectives

Question 1

Business objectives? (def)

Answer 1

Aims at target the business works towards.

Question 2

What are the business objectives?

Answer 2

Business survival, profit, returns to shareholders, growth of business, market share, service to the community.

Question 3

Profit?

Answer 3

Is the total income of a business

Question 4

Market share?

Answer 4

Is the percentage of total market sales held by one brand or business.

Question 5

Social enterprise?

Answer 5

SE are operated by private individuals but have other objective other than profit

Question 6

Stakeholder?

Answer 6

Is any person or group with a direct interest in the performance and activities of the business

Question 7

What are the objectors of the Owners (internal)

Answer 7

The want the business to grow and gain profit ​

Question 8

What are the objectors of the Workers (internal)

Answer 8

They want a fair salary and good working conditions, job satisfaction and job security ​

Question 9

What are the objectors of the Managers (internal)

Answer 9

They want job security and profits (as often they receive bonuses based on profit) ​

Question 10

What are the objectors of the Customers (external)

Answer 10

They want safe and reliable products with high quality and to pay a fair price ​

Question 11

What are the objectors of the Government (external)

Answer 11

They want to ensure the business is abiding by the laws e.g. national minimum wage and environmental laws ​

They also want the business to succeed because:
1. the business can provide citizens jobs
2. they can earn corporation tax from Business profits ​

Question 12

What are the objectors of the whole community (external)

Answer 12

They are interested as they may be able to get a job in the business ​

They want top ensure the business doesn’t damage the local community e.g noise , air and litter pollution ​

Question 13

What are the objectors of the Banks (external)

Answer 13

They want the business to be able to pay back bank loans, with interest ​

Question 14

Why business objectives could change (2)

Answer 14

1) A business set up recently has survived for three years and the owner now aims to work towards higher profit.

2) A profit-making business operates in a country facing a serious economic recession so now has the short-term objective of survival

Question 15

Market share % = *

Answer 15

company sales
Market share % = ————————– x 100
Total market sales

Question 16

What are the 3 internal stakeholders? (3)

Answer 16

1. Owners
2. Workers ​
3. Managers ​

Question 17

What are the 4 external stakeholders? (4)

Answer 17

1. Local Community ​
2. Government ​
3. Customers ​ ​
4. Banks ​