Business objective and stakeholder objective

Business objective and stakeholder objective

1. BUSINESS OBJECTIVE

   • Definition : business objective are the aims or targets that business work towards.Their aims can change depending on their type of business or depending on situation
   • The benefits of setting business objective are they give workers and managers a clear target to work, business managers can compare how the business has performed.
   • The most common objective are...
     • business survival : If a business do not survive, the owners can lose everything. Therefore , businesses need to focus on this objective the most when they are starting up a new business, competing with other business or an economic recession
     • Profits : Profit is total income of a business, it is the main aim of most businesses. Profits are needed to pay a return to the owner of the business for the capital invested and the risk taken. Provide finance for further investment in the business.
     • Returns to shareholder : Shareholder own limited companies. The managers of companies will often set the objective of "increasing returns to shareholder". This is to discourage shareholder to selling their share.
     • Growth : The owners and manager of business may aim for growth in the size of the business, it usually measured by value of sales or output for a number of reasons, to make jobs more secure if the business is larger, increase the salaries
     • Marketshare : Marketshare is the proportion of total market sales achieved by one business.If we could increase marketshare it will increased influence over customers and suppliers.
     • Service to the community : This is the primary goal for most government owned business.They plan to produce essential products to everybody who need them.

2. Stakeholder

   • Definition : people who are interested in your business
   • owner
     • put capital, expand business, risk takers.
   • workers
     • employees,follow instruction, if business fails job lost
   • Managers
     • boss employee,making important business
   • Customers
     • important to business,need to succeeding business
   • The whole community
     • get affected
       • by environment,pollution,nature
       • create jobs,increase standard living.
   • Government
     • responsible for country economy,use law for country
   • Banks
     • provide finance(money) for the business.