Business Objectives And Stakeholder Objectives (Copy)
1.5 Business Objectives and Stakeholder Objectives
1.5.1 Business Objectives
Need for Objectives
- Provide direction and purpose.
- Motivate employees.
- Measure performance.
- Attract investors.
Types of Objectives
| Objective | Meaning | Example |
|---|---|---|
| Survival | Short-term aim in early years or crisis | Start-ups during recession |
| Profit | Generate income for owners/shareholders | Apple posting record profits |
| Growth | Expand output, markets, staff | Amazon global expansion |
| Market Share | Increase proportion of industry sales | Samsung competing with Apple |
| Social Enterprises | Aim for community/environmental benefit, not just profit | Fairtrade coffee co-ops |
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
1.5.2 Stakeholder Groups
Main Stakeholders
- Internal: Owners, managers, employees.
- External: Customers, suppliers, government, local community, banks.
Objectives of Stakeholders
| Stakeholder | Objectives |
|---|---|
| Owners/Shareholders | Profit, growth, return on investment |
| Managers | Salary, status, career success |
| Employees | Job security, fair wages, safe conditions |
| Customers | Quality, value for money, good service |
| Suppliers | Reliable contracts, prompt payments |
| Government | Taxes, compliance, employment |
| Community | Jobs, minimal pollution, local support |
Conflicts Between Stakeholders
- Owners want higher profits ↔ Employees want higher wages.
- Customers want low prices ↔ Suppliers want high payments.
- Government wants higher taxes ↔ Owners want to minimise tax.
- Example: A factory expansion creates jobs (owners, employees) but increases pollution (community conflict).
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
1.5.3 Private vs Public Sector Objectives
| Sector | Main Objectives | Example |
|---|---|---|
| Private Sector | Profit, growth, market share | Amazon, Coca-Cola |
| Public Sector | Service to community, welfare, affordability | NHS (UK healthcare), public transport |
- Private → efficiency + profitability.
- Public → universal service, accessibility, employment.
Quick Recap Keywords
- Business objectives = survival, profit, growth, market share, social aims
- Stakeholders = owners, managers, employees, customers, suppliers, government, community
- Conflicts = wages vs profits, taxes vs reinvestment, pollution vs jobs
- Private sector = profit-driven
- Public sector = service-driven
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