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    CH 5 - Business Objectives Grade 8

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    Business objectives aim to help businesses run successfully and include targets like increasing market share. Objectives work best when they are SMART - specific, measurable, achievable, realistic and time-bound. Private sector businesses also have objectives like maximizing profits and shareholder wealth. They must consider stakeholder objectives like corporate social responsibility. Stakeholders include internal groups like shareholders, employees, managers and external groups like customers, suppliers, the community and government.

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    CH 5 - Business Objectives Grade 8

    Uploaded by

    aysilislam528
    21 views18 pages
    Business objectives aim to help businesses run successfully and include targets like increasing market share. Objectives work best when they are SMART - specific, measurable, achievable, realistic and time-bound. Private sector businesses also have objectives like maximizing profits and shareholder wealth. They must consider stakeholder objectives like corporate social responsibility. Stakeholders include internal groups like shareholders, employees, managers and external groups like customers, suppliers, the community and government.

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    Ch 5- Business Objectives Grade 8

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    Business objectives aim to help businesses run successfully and include targets like increasing market share. Objectives work best when they are SMART - specific, measurable, achievable, realistic and time-bound. Private sector businesses also have objectives like maximizing profits and shareholder wealth. They must consider stakeholder objectives like corporate social responsibility. Stakeholders include internal groups like shareholders, employees, managers and external groups like customers, suppliers, the community and government.

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    Download as pptx, pdf, or txt
    21 views18 pages

    CH 5 - Business Objectives Grade 8

    Uploaded by

    aysilislam528
    Business objectives aim to help businesses run successfully and include targets like increasing market share. Objectives work best when they are SMART - specific, measurable, achievable, realistic and time-bound. Private sector businesses also have objectives like maximizing profits and shareholder wealth. They must consider stakeholder objectives like corporate social responsibility. Stakeholders include internal groups like shareholders, employees, managers and external groups like customers, suppliers, the community and government.

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    CHAPTER 5

    BUSINESS OBJECTIVES AND STAKEHOLDER OBJECTIVES

    Business objectives

    Business objectives are the aims and targets that a business work towards to help it run
    successfully.
    Although business objectives does not always guarantee success, it has certain benefits.

    Benefits of setting objectives


    SMART OBJECTIVES
    SMART OBJECTIVES
    Objectives are said to be SMART, if they fulfil certain criteria (condition) listed below:

    S-Specific- Stating clearly what is trying to be achieved


    (defining the objectives clearly)
    M-Measurable-Capable of numerical measurement
    (can be expressed in terms of numbers)
    A-Achievable-Attainable by the people involved
    (can be achieved with the help of owners and employees)
    R-Realistic and relevant-Able to be achieved with the given resources
    (can be achieved with the available resources of the organisation)
    T-Time specific-state a time by which they should be achieved
    (a time limit should be given to achieve these objectives)

    Example----Increase market share by 10% next year


    Objectives of private sector businesses
    1.

    2.

    3.
    4.

    5.

    Also known as ‘corporate social responsibility’


    Corporate Social responsibility

    Businesses taking responsibility for the impact their activities might have on society and
    the environment
    This concept have gained importance because of the following reasons:
    • Activity of pressure groups
    • The role of media
    • The role of trade union and other employee representing groups
    • The role of government and the laws passed by them
    Social enterprise

    A business with social objectives that reinvests most of its profits back into the
    business or into benefiting society at large.

    -They have profit as an objective but unlike other private sector businesses, their
    profits are re-invested back into the business.

    -This allows them to expand their activities or benefit the local community rather
    than earning high profits for the owners or shareholders.
    - They can be small or large businesses or operated as Cooperatives (formed by a
    group of members having common interests)
    i. INTERNAL STAKEHOLDERS

    1.Shareholders or owners
    2. Workers/Employees
    3. Managers
    i i External stakeholders

    1. Customers
    2. Government
    3. Banks/Lenders

    4. Community
    5. Suppliers

    The suppliers provide materials to the business on cash or credit basis.

    • They are interested to know whether the business has enough funds to pay their short-
    terms debts

    • If the business becomes successful and expands, the suppliers will benefit- as the
    business will require more inventories from the suppliers

    • However, a business may ask for discounts for bulk purchases

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