1.5 - business objectives

Question 1

business objectives

Answer 1

aims and targets that a business works towards to help it run smoothly

Question 2

benefit of setting business objectives

Answer 2

• increases motivation as employee and managers now have clear targets to work on
• decision making will be easier & less time consuming
• reduces conflicts and helps focus the business towards reaching the same goal
• managers can compare the business performance to it’s objectives and make any changes

Question 3

different business objectives

Answer 3

• survival
• maximising profit
• growth
• increasing market share
• improving the cashflow

Question 4

objective of a social enterprise

Question 5

stakeholders

Answer 5

a person or a group which has interest in a business for various reasons and are directly affected by it’s decisions

Question 6

internal stakeholders

Answer 6

directly involved w the day to day running of the business
- owners, workers, managers

Question 7

external stakeholders

Answer 7

outside the business and are not involved in it’s running or decision making
- customer, government, community, suppliers, investors, creditors

Question 8

stakeholder objectives

Answer 8

owners:
-profit
- growth, increase value of business

workers
- high salaries
- job security
- job satisfaction

managers
- high salaries
- job security
- growth of business so they get mroe power, status,salary

customers
- safe products
- high quality products that r durable
- value for money
- reliability of service and maintenance

government
- employment
- taxes
- national output/GDP increase

community
- employment creation
- security
- business does not pollute environment
- safe products that are socially responsible

suppliers
- timely payments
- regular business
- client satisfaction

Question 9

how stakeholder objectives might conflict

Answer 9

the owners need for more profit
1)- workers and managers need for high salaries
—-> may lead to industrial strikes and legal battles where worker try to force the owner to increase salaries
2) may also cause them to compromise on the quality of the product to reduce costs
e.g furniture busines may use lower quality wood - conflicts w customer needs for high quality product
3) gov objective of taxes may conflict w workers objective of high salaries