Lesson 5 - Business Objectives and Stakeholder objectives Flashcards
Define Business Objectives
Business Objectives are the aims or targets that the business works towards.
List 2 Benefits of Having objectives for a business.
- Clear and measurable objectives help unite the whole business towards the same goal
- Boosts the workers motivation
List 3 Objectives of Businesses in the Private sector
- Business survival
- Profit
- Market share
What is the formula for market share ?
Company sales/total market sales * 100
Define market share
Is the proportion of total market sales achieved by one business.
List 3 Benefits of Increased market share
- Good publicity
- Increased influence over suppliers
- Increased influence over customers
Define a Social Enterprise
A Social Enterprise has social objectives as well as an aim to make profit to reinvest back into the business.
List 3 objectives of Social Enterprises
- Social : Provide jobs and support for disadvantaged groups in society.
- Environmental: protect the environment
- Financial : to make profit to invest back into the social enterprise to expand the social work that it performs
Define a Stakeholder
A stakeholder is any person or group with direct interest in the activities and performance of a business.
List the stakeholders
Customers Owners Workers Government Managers Banks The whole community
Objectives of each stakeholder
- Customers: value for money and safe and reliable products
- Owners Growth of the business so that the value of their investments increases
- Workers:a regular payment for their work
- Government: want business to succeed
Define Profit
Profit is the total income of a business (sales revenue) less total costs.
Profit formula
Sales revenue - total costs
