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Unit 1.3 Business Objectives the role of Stakeholders

What are business objectives? . They will vary depending on the business, but are usually summarised in the MISSION STATEMENT.. PROFIT. This is usually THE main objective for most privately owned businesses. MAXIMISING profits means it makes as much as possible, although TOO MUCH profit can cause a negative customer response (e.g. petrol companies during the fuel crises)..

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Unit 1.3 Business Objectives the role of Stakeholders

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    1. Unit 1.3 – Business Objectives & the role of Stakeholders

    2. What are business objectives? They will vary depending on the business, but are usually summarised in the MISSION STATEMENT.

    3. PROFIT This is usually THE main objective for most privately owned businesses. MAXIMISING profits means it makes as much as possible, although TOO MUCH profit can cause a negative customer response (e.g. petrol companies during the fuel crises).

    4. GROWTH Growth usually = higher profits. This is especially important to plc’s. Growth can occur through: SALES – e.g. more branches not profit. MARKET SHARE – where by they control more of the overall market. ELIMINATION OF COMPETITION – through takeovers or closure.

    5. Student activity In pairs, can you name (5 minutes): Three businesses that have grown through expansion. Two businesses that control a large market share. One business that has grown through a takeover. One business that has/might grow because a competitor has closed down.

    6. SURVIVAL This is usually the main short-term objective of new businesses. Falling sales could also result in this becoming an objective for an existing business.

    7. PROVIDING A SERVICE This is of particular importance to smaller businesses as a good name is important if customers are to be kept. It is also one of the main objectives of publicly owned businesses such as the Post Office or NHS.

    8. Student activity In pairs, make a list of as many businesses as you can that actively pursue good quality customer service. Be sure that you could explain how they do this as people will be asked at random to explain their answers. You have 5 minutes for this task.

    9. Private vs. Public – round one The private sector is made up of businesses that: Are owned by individuals or other businesses. Operate as sole traders, partnerships, Ltd’s, plc’s or co-operatives. It is the largest part of business activity in the UK.

    10. Private vs. Public – round two The public sector is made up of businesses that are owned by either: Central Government or Regional Government. Examples include the Post Office, education, NHS, Railtrack, police/fire service, armed forces or the BBC.

    11. Conflicts in business objectives Student Activity In groups of 3 or 4 – prepare a short presentation that explains: Why a business such as McDonalds might have conflict between growth and profit? Why a business such as Asda might have conflict between growth and service? Why a business such as Red Chard might have conflict between survival and profit?

    12. Stakeholders in business Student Activity We’re going to design a spider diagram for the wall in H6. In groups of 3, you will be asked to contribute a section towards the display. You will have to: Produce an illustrated description for your given title. Explain to the rest of the class, at the end, why your group of interested parties are stakeholders. The business will be Nestle. The different titles are WORKERS, MANAGERS, OWNERS, CUSTOMERS, SUPPLIES, GOVERNMENT & LOCAL COMMUNITY.

    13. Mini project Now do Task 2

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