5. business objectives and stakeholder objectives

• a business setting a business so that:

  • give managers and workers a clear target to work towards, help motivate
  • taking decisions will be focused on
  • clear and measurable help unite (đoàn kết) the business towards the same goal
  • compare to see of they have been successful or not
• objectives of private sectors:

  • survival
  • profit
  • returns to shareholders
  • growth
  • market share
  • service to the community
• market share is the percentage of a market that a business controls, calculated by dividing the total sales of a business by the total sales of all businesses in the market
• survival: the economy can move into recession, the business will priorities the survival of the business, new competitors make the business fell less secure
• profit are needed to pay a return to the owners for capital invested in, provide finance for further inverstment
• return to shareholders are increased by increasing the profit, paid to shareholders s dividends. Increase share price by putting plans that give a good chance of growth and higher profit in the future
• increase market share can :

  • give good publicity (more popular)
  • increase influence over suppliers(become more keen(hăng hái) to sell to a big business)
  • increase influence over customers
• social enterprise has an objective to make a profit to reinvest back into the business
• objectives of social enterprise:

  • to provide jobs for the disabled or homeless
  • to protect the environment
  • to make a profit to reinvest back, expand social work, and increase performance
• examples of how business objectives can change:

  • the business survived 3 years, now the objective is to make a higher profit
  • achieved higher market share, now the objective is earning higher returns for shareholders
  • profit-making business facing economic problems recession and now the objective is to survive
• internal stakeholders are:

  • owners
  • workers
  • managers
• external stakeholders are:

  • customers
  • government
  • community
  • banks
• Objectives of a public sector:

  • meet profit targets set by the government
  • service
  • protect or create employment