Business Objectives And Stakeholder Objectives: Businesses Can Have Several Objectives And The Importance Of Them Can Change (Copy)
Cheat Sheet: 1.5.2 Stakeholder Groups & Objectives
| Stakeholder | Type | Objectives | Example |
|---|---|---|---|
| Owners/Shareholders | Internal | Profit, growth, dividends, rising share value | Apple shareholders expect high returns |
| Managers | Internal | Job security, career growth, bonuses, status | CEO aiming for expansion |
| Employees | Internal | Wages, job security, safe working conditions | Factory workers demanding fair pay |
| Customers | External | Quality, low price, good service | Amazon customers expect fast delivery |
| Suppliers | External | Regular orders, prompt payments | Farmers supplying supermarkets |
| Government | External | Taxes, jobs, law compliance | UK govt. monitoring Tesco |
| Community | External | Jobs, low pollution, CSR | Locals near a mining company |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Stakeholder Objectives vs. Conflicts
| Conflict | Explanation | Example |
|---|---|---|
| Owners vs. Employees | Owners want low costs, Employees want higher wages | Factory cuts pay to increase profit |
| Customers vs. Shareholders | Customers want low prices, Shareholders want high profits | Airline increases ticket prices to boost dividends |
| Government vs. Business | Govt. wants taxes, Businesses want to minimise costs | Multinational using tax loopholes |
| Community vs. Business | Business may pollute, Community wants clean environment | Oil company vs. local residents |
| Managers vs. Shareholders | Managers may seek growth/power, shareholders want profit | CEO invests in risky projects |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Revision Bullets
- Internal stakeholders = owners, managers, employees
- External stakeholders = customers, suppliers, govt, community
- Objectives can conflict (profit vs. wages, low cost vs. quality)
- Businesses must balance interests to succeed long term
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course