1.5 Business Objectives and Stakeholder Objectives

1.
5 Business & stakeholder objectives

Essential Question
What are the main objectives of most businesses?
Learning Objectives
Topic Guidance
1.5.1 Businesses can have • Need for business objectives and the importance of them
several objectives and the • Different business objectives, e.g. survival, growth, profit
importance of them can and market share
change: • Objectives of social enterprises
1.5.2 The role of stakeholder • Main internal and external stakeholder groups
groups involved in business • Objectives of different stakeholder groups
activity: • How these objectives might conflict with each other, use
examples
1.5.3 Differences in the

objectives of private sector and
public sector enterprises
Business objectives
A business objective is a goal that an organisation wants to

achieve in order to reach its long-term targets.
Give examples of;
1. A personal objective you have

2. A business objective a firm may have
Business objectives
Objectives should be SMART (specific, measurable,
achievable, realistic and timely).
From the examples you just gave, analyse if they are SMART
or not.
Try to make them smarter!
With your groups discuss how you could make this objective
SMART; “Our objective is to become the biggest car
manufacturer in this country”
Common business objectives
Think of real life examples of businesses that have 1 of these as

their main objectives. Why do you think that is?
Survival
Growth
Profit
Market share*
*Market share is usually measured by looking at a business’s

revenue as a percentage of the industry's total revenue.
Objectives of social enterprise
A social enterprise is a business that exists to benefit

society in some way. It generates revenue and profit like a
regular business, but in order to fulfil its social cause.
Task: Choose 1 of the 10 social enterprises from this list.

Investigate & report back.
Stakeholder objectives
What is a stakeholder?
= individuals or groups that have some interest in an

organization, i.e. they are affected by it in some way
Don’t get this term confused with SHAREHOLDERS.

Shareholders are the owners of companies.
Which groups are stakeholders in TES?

For 1 of the stakeholders on this or the next slide, brainstorm & share objectives
they may have;
INTERNAL stakeholder Objective
Employees
Owners
Managers
Shareholders
N.B. Internal stakeholders are either owners or employees of the business

EXTERNAL stakeholder Objective
Customers
Creditors
Suppliers
Governments
Competitors
The local community
Pressure groups
Stakeholder conflicts
In an organisation it is very common for different groups of
stakeholders to have disagreements (conflicts)
Mingle activity:
From the perspective of your shareholder;
1. Choose another stakeholder
2. Discuss your objectives
3. Discuss any potential conflicts.
4. How could you resolve those conflicts?
5. Share with the class.
6. Repeat
Stakeholder conflicts
How can stakeholder conflicts be resolved? Brainstorm
1. Understand the conflict. / Other stakeholder objectives

2. Communicate with the opposition.
3. Brainstorm possible resolutions.
4. Choose the best resolution.
5. Use a third party mediator.
6. Explore alternatives.
7. Decide on a course of action
Come up with a resolution for this conflict:
Employee/ Owner
Employees want a pay rise
Owners are worried because profits are low
Private sector vs public sector objectives
What is the difference between public/private sector businesses?
Public is owned/operated by the government.
Private is owned/operated by individuals
How are public sector objectives different from private sector?
● Provide a service such as public transport, to improve infrastructure and
therefore the mobility of people and business.
● Improve health and well-being of citizens through the running of public
hospitals.
● Improve education and literacy through the running of public schools.
● Support vulnerable communities by providing jobs for people who might
otherwise struggle to find employment.
End of chapter tasks
1. Section questions
2. Checklist
3. Key terms (Quizlet)
4. Test coming up (See next page for some practice)
a) What is meant by a sole trader? (2)
b) Identify 2 possible reasons a firm may want to grow (2)
c) Identify 2 ways of measuring the success of a business (2)
d) Identify 2 examples of public sector businesses (2)
e) Explain 2 reasons why profit is important to private sector businesses (4)
f) Identify and explain 2 advantages of converting a partnership to a private limited company (4)

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1.

5 Business & stakeholder objectives

1.5.3 Differences in the

A business objective is a goal that an organisation wants to

Give examples of;

1. A personal objective you have

Try to make them smarter!

Think of real life examples of businesses that have 1 of these as

*Market share is usually measured by looking at a business’s

A social enterprise is a business that exists to benefit

Task: Choose 1 of the 10 social enterprises from this list.

= individuals or groups that have some interest in an

Don’t get this term confused with SHAREHOLDERS.

Which groups are stakeholders in TES?

INTERNAL stakeholder Objective

N.B. Internal stakeholders are either owners or employees of the business

The local community

1. Understand the conflict. / Other stakeholder objectives

Come up with a resolution for this conflict:

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