1.5 business objectives and stakeholder objectives Flashcards
business objective
Business objectives are the aims and targets that a business works towards to help it run successfully.
advantages of business target
- motivate cuz clear target
- easier to take decisions
- help unite to the same goal
- can compare progress to target
what are the business objectives
- survival
- growth
- return to share holder
- profit
- market share
- social
what is survival?
-recently set up
-econmy recession
-new competitors
-high competiton
sol:
-lower prices to survive
what is profit?
-income after deducing total cost
-usally for private sector
needed for:
-paying returns
-providing finance (reinvesment)
risk:
-high prices costumer will stop buying goods
-other business may be encouraged to set up= high comp
sol:
-satisfactory lvl profit = avg working hours and less taxtation to gov.
return to shareholders
-discourage shareholders to sell shares= help manager keep job
sol:
-increasing profit= incsrese in dividend
-increse share price= plans that help grow
growth
meaured by value of sale or outpt
- make jobs secure
- increse salsary and status
- spread risk (diversify)
- more market share
- economies of scale
market share
-total percentage of market sales held by one brand
-comapny sale/total market sale x 100
good for:
-publicity
-influence over supplier
-influence over coustomer
social enterprise
-has social objectives and aims to make profit and reinvest back
have 3 objectives:
-soicial - provide jobs and help underprivileged
-enviormental
-financial to reinvest
why do business objectives change
- new business that survived
- alr achieved high market share
- economic recession
stake holders
A stakeholder is any person or group that is interested in or directly affected by the performance or activities of a business.
internal stakeholders
- owner
- manager
- worker
- shareholder
owner/shareholder
feature:
- invest
- take share of profit
- loose money if business dosent woek wlel
- risk taker
objectives:
- shre of profit for return of shit invested
- growth og bsuiness so value of share
managers
features: -employee and control other ppl -take imp decisons objective: -growth= status & power -more slalary -job security
workers
features:
- emplyed by the business
- need to follow instruction
- do work effivcentyl
- amde edundant if not enuff work
objectives:
- emplyee contact
- job satisfaction
- salary
- motivation
