business objectives and stakeholders

• Business objective


  The aim of the business
• Businesses need objectives to make sure they are going in the right direction and that their employees and workers know what they are doing for the business
• Common business objectives for private sector businesses

  • Survival
  • Profit
  • Return to shareholders
  • Business growth
  • Market share
  • Service to the community
• Survival


  To make sure the business has a plan and can lower prices
• Profit


  To pay return to the owners by increasing prices
• Return to shareholders


  Shareholders get profits and won't sell shares, can be achieved by increasing profit and share price
• Business growth


  To make jobs more secure by identifying customer needs or diversifying
• Market share


  Good for publicity and increasing influence, can be achieved through advertising and growth
• Service to the community

  Help market product at fair price, protect environment, provide jobs, give to charity
• Business objectives always stay the same
• A business owner has survived for 3 years


  They may want to change objective to growth or profit
• A business has achieved higher market share


  They may want to move to service to the community or giving back
• A business is under threat from COVID-19

  They may move from profit or growth back down to survival
• Stakeholder


  Any person who has an interest in the business
• Stakeholder examples


  • Owners
  • Workers
  • Managers
  • Customers
  • Government
  • Whole community
  • Banks
  • Shareholders
• Stakeholder objectives


  • Safe and reliable products
  • Regular payment
  • Firm to stay within the law
  • Growth of the business
• Internal stakeholders


  People who are intricately involved in the business (owners, workers, managers, shareholders)
• External stakeholders


  People who don't directly benefit from the business (customers, government, community, banks)
• Businesses must adapt their business objectives to suit different stakeholders because they rely on a variety of stakeholders to survive
• Private sector businesses have different objectives than public sector businesses
• Common public sector business objectives

  • Financial (meeting profit set by government)
  • Providing a service
  • Meeting quality targets set by government
  • Social (providing quality employment in certain areas)