business objectivesandstakeholderobjectives (encrypted)
TRANSCRIPT
Set the Business Objec/ves
What Objec/ves do Business Set ?
Business Survival
Profit
Returns to Shareholders
Growth of the Business
Market Share
Service to the Community
Profit
• Pay a return – capital invested • Provide finance – further investment
Growth of the Business • Usually measure by the value of sales /output
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 < )
Returns to Shareholders
• Increasing : -‐ Profit -‐ Share price
Market Shares
Service to the Community
• Social – provide jobs for disabled / homeless • Environmental – protect environment • Financial – make profit and invest back to expand social work
Business ObjecDves could change ?
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
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