Unit 2: The organisation

Question 1

What does SMART stand for?

Answer 1

Specific Measurable Agreed Relevant/Relatable Time-related

Question 2

The importance of business objectives?

Answer 2

Having a goal gives the business a sense of direction. Business have objectives to provide clear end purposes towards which to work, to enable everyone in a business to focus on the purpose, to make it possible to check on progress and to make improvements.

Question 3

Give examples of objectives for Growth, Profitability, and Market Share for the business.

Answer 3

Growth: To increase the number of employees by 10% by next year.
Profitability: To increase the profits by 5% per year for the next 5 years.
Market share: To increase market share to 75% of the UK market.

Question 4

What are stakeholders?

Answer 4

A stakeholder is any group of people that are affected by or are interested in the business activity.

Question 5

Name the internal and external stake holders.

Answer 5

Internal: Owners and Employees.
External: Customers, Suppliers, Local and national communities, Governments, Pressure groups, Trade unions, Employers’ associations.

Question 6

What do the stakeholders want from a business?

Answer 6

Owners want the business to grow and be profitable.
The employees want security of employment, promotion opportunities and good rewards.
Customers want high quality and value-for-money products.
Suppliers want steady orders and good payment.
Local and national communities want the business activities not to affect the community in the bad ways.
Governments want the business to be successful in order to create jobs and pay taxes.
Pressure groups have particular interests and don’t want the business to affect their interests (for example environmental campaigns).
Trade unions: Represent interests of groups of employees: seek higher wages.
Employers/ association represent the interests of groups of employers.