iGCSE Business Studies: Business and Stakeholder Objectives

Definition of Business Objectives: Targets a business works towards, guiding decisions and actions.

Benefits:

• Motivation: Clear targets improve motivation among workers and managers.

• Focus for Decision-Making: Align management decisions with objectives.

• Business Unity: Everyone works towards the same purpose.

• Performance Measurement: Compare actual performance against objectives to measure success.

Principal Business Objectives:

• Survival: Priority for new businesses or those in economic trouble.

• Profit: Revenue minus total costs; crucial for returns to owners and reinvestment.

• Growth: Job security, increased salary for managers, higher market share, achieving economies of scale.

• Service to Community: Some prioritize community welfare over profit.

Objectives of Social Enterprises: Focus on social and environmental goals, alongside financial profits.

Changing Objectives: Objectives may shift based on business lifecycle and external environment.

Stakeholders:

• Internal: Owners, workers, managers, with different objectives.

• External: Customers, community, government, banks—all can have conflicting objectives.

Public Sector Goals: Meet profit targets, provide public services, create jobs.

Conflict of Stakeholder Objectives: Decisions may benefit one group while harming another; managers must balance these interests.