Business objectivesandstakeholderobjectives (encrypted)
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This document discusses the objectives that businesses typically set and factors that may cause them to change. Common business objectives include survival, profit, returns to shareholders, growth, and market share. Objectives may shift based on economic conditions or the priorities of different stakeholders like owners, workers, managers, customers, government, banks, and the community. Business objectives could change to pursue higher profits, market share, or returns during better economic times, or shift to short-term survival during a recession due to pressures from various stakeholders.
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Business objectivesandstakeholderobjectives (encrypted)
- 1. Set the Business Objec/ves
- 3. What Objec/ves do Business Set ? Business Survival Profit Returns to Shareholders Growth of the Business Market Share Service to the Community
- 4. Profit • Pay a return – capital invested • Provide finance – further investment
- 5. Growth of the Business • Usually measure by the value of sales /output
- 6. Growth -‐ Job more secure ( Business is larger ) -‐ Managers : Status & -‐ PossibiliDes moving into new Products & Markets -‐ Higher market share from growth in sales -‐ Economic of scale ( cost < )
- 7. Returns to Shareholders • Increasing : -‐ Profit -‐ Share price
- 10. Service to the Community • Social – provide jobs for disabled / homeless • Environmental – protect environment • Financial – make profit and invest back to expand social work
- 12. Business ObjecDves could change ?
- 13. Why Business Objec/ves could change? Work toward higher profits Higher market share & ObjecDve of earnings higher returns for shareholders Facing a serious economic recession so now has short – term objecDve of survival
- 14. Business stakeholders Owners (Risk takers) Profits return on capital Workers (facing retrenchment) Incomes job security saDsfying work Managers (employee -‐ decision maker) Salaries status control Customers (market research – G&S) Goods and services quality good value Government (pass law – protect workers & consumers) Employment taxes increasing naDonal output Banks (provide finance) Business able to pay interest and repay capital lent Community (environment & living standard) Jobs clean environment safe product