business and stakeholder objectives 1.5

Question 1

businesses objectives

Answer 1

survival, growth, profit, market share

Question 2

The importance of business objectives

Answer 2

Gives direction – Helps the business stay focused on its goals.
Motivates staff – Encourages employees to work towards a common aim.
Measures success – Tracks progress and performance over time.
Guides decisions – Helps make choices that support business goals.
Creates accountability – Makes it easier to track who is responsible.

Question 3

internal stakeholder groups

Answer 3

owners (sole traders, partnerships, shareholders), managers, employees

Question 4

external stakeholder groups

Answer 4

customers, suppliers, lenders/banks, government, local community

Question 5

objectives of internal stakeholder groups

Answer 5

Owners/Shareholders – Want profit and business growth

managers- meet company goals, improve performance

Employees – Want job security, fair pay, good working conditions

Question 6

how do the different stakeholder groups objectives conflict with each other- Owners vs Employees

Answer 6

Owners may want to cut costs to increase profit
but employees want higher wages and better conditions, which increase costs

Question 7

objectives of external stakeholder groups

Answer 7

Customers – Want good quality products/services at fair prices and good customer service.

Suppliers – Want regular orders and long-term partnerships.

Local Community – Wants job opportunities, minimal pollution/noise, and support for local causes.

Government – Wants businesses to follow laws, pay taxes, and contribute to the economy.

Creditors (e.g., banks) – Want the business to repay loans on time and remain financially stable.

Question 8

how do the different stakeholder groups objectives conflict with each other- Employees vs Managers

Answer 8

Employees may want shorter hours or less pressure
managers want maximum productivity and efficiency.

Question 9

profit

Answer 9

total income of a business

Question 9

stakeholder groups objectives conflict with each other- Managers vs Shareholders

Answer 9

Managers may focus on long-term growth or employee well-being
while shareholders often want quick returns and higher dividends.

Question 9

social enterprise

Answer 9

has social objectives as well as an aim to make a profit to reinvest back into the business.

Question 10

market share

Answer 10

percentage of total market sales held by one brand or business

Question 11

shareholders

Answer 11

are the owners of a limited company. They buy shares which represent part-ownership of the company.