1.5 - business and stakeholder objectives

Question 1

what is a business objective?

Answer 1

an aim or target a business works towards

Question 2

why are business objectives important?

Answer 2

• give workers and managers a clear target to work towards - increased motivation ​
• allows the business to compare against their performance to see if they have been successful or not

Question 3

different business objectives

Answer 3

• survival
• to make profit
• growth
• increase in market share

Question 3

what is social enterprise?

Answer 3

companies operated by private individuals but have objectives other than profit

Question 4

what are the objectives of a social enterprise?

Answer 4

• helping the community e.g. providing jobs to disadvantaged​
• helping the environment

Question 5

what are internal stakeholders?

Answer 5

stakeholders that work for the business or own it
- owners
- employees
- managers

Question 5

what is a stakeholder?

Answer 5

a person or group who have a direct interest in the performance and activities of the business

Question 5

what are external stakeholders?

Answer 5

stakeholders that are outside of the business
- customers
- government
- local community
- banks

Question 6

internal stakeholders and their objectives

Answer 6

• owners - want the business to grow and gain profit
• employees - want a fair salary, good working conditions, job satisfaction and job security
• managers - want job security and profits (often receive bonuses based on profit)

Question 7

external stakeholders and their objectives

Answer 7

• customers - want safe, reliable products with high quality and to pay a fair price.
• government - want to ensure the business is abiding by the laws. they also want the business to succeed to provide citizens with jobs and they can earn corporation tax
• local community - may want to get a job with the business and want to ensure the business doesn’t damage the local community e.g. noise pollution
• banks - want the business to repay bank loans with interest

Question 8

private sector objectives

Answer 8

to make profit

Question 9

public sector objectives

Answer 9

provide services to the public, create employment and make profit in order to have a sustainable business