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    English Chapter 5 - Business and Stakeholder's Objectives

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    jibari
    The document discusses business objectives and stakeholders' objectives. It notes that businesses set objectives using SMART criteria and that common business objectives include survival, profit, growth, and market share. Social enterprises also aim to benefit employees and communities while caring for the environment. The document outlines that stakeholders like owners, managers, employees, lenders, suppliers, customers, and the government all have their own objectives that can either align with or conflict with the business's objectives. Finally, it states that public sector organizations prioritize accessibility, affordability and inclusiveness over profit objectives that are more important for private sector businesses.

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    English Chapter 5 - Business and Stakeholder's Objectives

    Uploaded by

    jibari
    175 views3 pages
    The document discusses business objectives and stakeholders' objectives. It notes that businesses set objectives using SMART criteria and that common business objectives include survival, profit, growth, and market share. Social enterprises also aim to benefit employees and communities while caring for the environment. The document outlines that stakeholders like owners, managers, employees, lenders, suppliers, customers, and the government all have their own objectives that can either align with or conflict with the business's objectives. Finally, it states that public sector organizations prioritize accessibility, affordability and inclusiveness over profit objectives that are more important for private sector businesses.

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    Business and stakeholder's objectives

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    English Chapter 5 - Business and stakeholder's objectives

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    The document discusses business objectives and stakeholders' objectives. It notes that businesses set objectives using SMART criteria and that common business objectives include survival, profit, growth, and market share. Social enterprises also aim to benefit employees and communities while caring for the environment. The document outlines that stakeholders like owners, managers, employees, lenders, suppliers, customers, and the government all have their own objectives that can either align with or conflict with the business's objectives. Finally, it states that public sector organizations prioritize accessibility, affordability and inclusiveness over profit objectives that are more important for private sector businesses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    175 views3 pages

    English Chapter 5 - Business and Stakeholder's Objectives

    Uploaded by

    jibari
    The document discusses business objectives and stakeholders' objectives. It notes that businesses set objectives using SMART criteria and that common business objectives include survival, profit, growth, and market share. Social enterprises also aim to benefit employees and communities while caring for the environment. The document outlines that stakeholders like owners, managers, employees, lenders, suppliers, customers, and the government all have their own objectives that can either align with or conflict with the business's objectives. Finally, it states that public sector organizations prioritize accessibility, affordability and inclusiveness over profit objectives that are more important for private sector businesses.

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    Chapter 5: Business objectives and stakeholders objectives

    Objective: a statement of a specific target to be achieved.

    1- Business objectives and how their importance can change

    Every business needs to set objectives. This helps managers to produce a


    plan or strategy to set out how objectives will be achieved. It should be
    reviewed from time to time just to make sure its in tune with the target.

    a- Businesses use usually SMART criteria to set objectives:


    - Specific, Measurable, Achievable and agreed, Realistic and relevant,
    Time bound.

    b- Different business objectives

    Objectives might differ among new and established business but the most
    common are:

    - Survival: to maintain existing for a long while based on profit and


    growth.
    - Profit: generating the greatest difference possible between revenue
    and the total costs.
    - Growth: expanding the size of the business in order to increase
    output and benefit from economies of scale.
    - Market share: the revenue of a business expressed as a
    percentage of total market revenue.
    - Corporate social responsibility: business taking responsibility for
    the impact their activities might have on society and the
    environment. This has become an important objective for businesses
    as result of:
    Media;
    The role of trade unions, of government and laws;
    The activity of pressure groups: organizations of like-minded
    people who put pressure on business and government to change
    their policies to reach a predetermined objective.

    c- Objectives of social enterprises

    Social enterprise: is a business with social objectives that


    reinvests most of its profits back into the business or into benefiting
    society at large.
    - Objectives are like:
    Benefits employees;
    Relates to needs of local communities;
    Relates to care of the environment.
    2- The role of stakeholder groups

    A stakeholder is an individual or group which has an interest in a business


    because they are affected by its activities and decisions. There are two
    types of stakeholders: internal and external.

    The decisions and activities of a business may have positive or negative


    effects on stakeholders. Stakeholders in turn have their own objectives
    that they will want to achieve through their relationship with the business
    in which they have an interest.

    Internal stakeholders
    Owners - To receive high
    returns/dividends as reward
    for risking their investment in
    the business.
    - To benefit from an increase in
    share value.
    Managers - To have a job satisfaction and
    status
    - To receive salary increase and
    bonuses
    Employees - To have job security.
    - To receive a fair wage that
    reflects their contribution to
    the businesss success.
    External stakeholders
    Lenders - To receive interest payments
    when due.
    - To have borrowing repaid by
    the due date.
    Suppliers - To receive prompt payment
    for goods supplied on credit.
    - To be treated fairly and not be
    forced to reduce their prices
    by businesses of strong
    buying power.
    Customers - To receive quality goods and
    after sales service.
    - To be charged a fair price
    which gives value of money.
    Government - To be paid the correct amount
    of taxes on time.
    - To have minimal spending on
    unemployment benefits.
    Local community - To receive benefits for the
    local economy such as
    employment and subsiding
    community facilities.
    - To avoid the negative impact
    of business activities such as
    noise, air and traffic pollution.

    3- Objectives of public sector and private sector enterprises

    Public sector organizations have very different aims and objectives from
    those in the private sector. The services and facilities they provide must
    be: accessible, affordable and open to all.

    Some vocabulary: rentier economy, liquidity, non-current asset,


    inventories, profit sharing schemes, trade unions, business plan.

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