Business objectives and stakeholder obectives

• Business objectives include survival, profit, growth, providing a service to society, and meeting stakeholder objectives.
• Survival is a business objective when a business has recently set up, or when an economy is moving into recession, as it is more concerned with survival than anything else.
• Profit is the total income of a business and is needed to pay a return to the owners of the business to return the capital invested and the risks taken, or to provide finance for further investment in the business.
• Growth is an objective of the owners and managers of a business as it makes jobs more secure, helps to spread the risks of the business by moving into new products and new markets, and provides a higher market share from growth in sales.
• Providing a service to society is an objective of social enterprises, which are owned by private individuals, aiming to reinvest profits back into the business.
• Social enterprises aim to provide jobs and support for disadvantaged groups in society, protect the environment, and provide safe and reliable products that are socially responsible.
• A stakeholder is any person or group of people with a direct interest in the performance or activities of a business.
• Examples of stakeholders include owners, workers, managers, customers, government, the whole community, and banks.
• Business objectives of public sector businesses include financial, service, and social objectives.
• Financial objectives of public sector businesses sometimes involve reinvesting profit back into the business and on other occasions handing it over to the government as the owner of the organisation.
• Service objectives of public sector businesses include providing a service to the public and meeting quality targets set by governments.
• Social objectives of public sector businesses include creating or protecting employment in certain areas.