Chapter 5 - Business Objectives

Stakeholders

Stakeholders

________ are people who have a direct interest in the performance & activities of a business.

social enterprise

A(n) ________ has social objectives as well as am aim to make a profit to reinvest back into the business.

Job security

________- workers dont want to look for new jobs frequently.

Financial objectives

________: To make a profit to invest back into the social enterprise to expand the social work that it performs.

Business objectives

________ gives workers & managers a clear target to work towards.

Social objectives

________: to provide jobs & support for disadvantaged groups in society, such as the disabled or homeless.

Business Objectives

A business objective is an aim or a target that a business collectively works towards

Increasing share price

managers can try to achieve this not just by making profits but by putting plans in place that give the business a good chance of growth & higher profits in the future

Social objectives

to provide jobs & support for disadvantaged groups in society, such as the disabled or homeless

Environmental objectives

To protect the environment

Financial objectives

To make a profit to invest back into the social enterprise to expand the social work that it performs

Financial

meet profit targets set by the govt

Service

Provide a service to the public & meet quality targets set by the govt

Social

Protect or create employment in certain areas → especially poorer regions with higher level or unemployment

Job security

workers dont want to look for new jobs frequently

Expect all firms to stay with the law

law affects business activity

Business objective

Helps to make a business successful (but doesn't guarantee success). This gives workers & managers motivation & clearer targets

Business Survival

Most important for new-start ups or when economy is moving into recession. New competitors also cause insecurity

Profit

the total income of a business (revenue) minus total costs

Market share percentage =

(Company sales / total market sakes) x 100

Social enterprises

Businesses run by private individuals, but they have social (providing jobs for the disadvantaged) & environmental goals

Stakeholders

A person or a group of people with a direct interest in the performance & activities of a business. They can be external & internal

Returns to shareholder

The managers of a company often set the objective of increasing returns to shareholders. This is done to discourage shareholders from selling their shares & helps the managers to keep their jobs

Growth can only be achieved when

the customers are satisfied the product / service provided

Social objectives

To provide jobs & support disadvantageous groups in society

Environmental Objectives

To protect the environment

Financial Objectives (for social enterprises)

To make a profit to invest back into the social enterprise to expand the social work that it performs