Objective: a statement of a specific target to be achieved.

It should be SMART

SMART:

Specific

Measurable

Achievable and Agreed

Realistic and Relevant

Time-specific

revenue
Market share= x 100%
total market revenue
Business objectives:

 Survival
 Profit
 Growth
 Market share
 Corporate social responsibility (CSR)

CSR:

 Social: relationships between business and society

 Ethical: discrimination
 Environmental: pollution, animal testing, recycling, conservation

Market share: the revenue of a business expressed as a percentage of total market revenue

Corporate social responsibility (CSR): business taking responsibility for the impact their activities might
have on society and the environment

Pressure group: a group of like-minded people that puts pressure on businesses and government to
change their policies to reach a predetermined objective

Corporate social responsibility has become an important objective for businesses as a result of:

 The activity of pressure groups

 The media, has created a greater awareness of social, ethical, and environmental issues among
consumers
 The role of trade unions and other employee representative group
 The role of government and the laws they pass at local, national, and international levels

Social enterprise: a business with social objectives that reinvests most of its profits back into the
business or into benefiting society at large.

Stakeholder: an individual or group has an interest in a business because they are affected by its
activities and decisions
There are two types of stakeholders:

Internal stakeholder: owners and shareholders, managers, and employees

External stakeholders: lender, suppliers, customers, government, local community

Owners and shareholders:

Profits belongs to the owners and is their reward for risking their investment in the business.

Local community:

Positive impact:

 The business may offer local people employment opportunities.

 Other businesses in the area may benefit as a result because employees will spend some their
money locally

Negative impact:

 Through noise
 Air pollution resulting from the production process
 Traffic problems

Stakeholder Objectives
Internal
Owners/ stakeholders To receive high returns/ dividends as reward for risking their investment in the
business
To benefit from an increase in share value
Managers To have job satisfaction and status
To receive salary, increase and bonuses
employees To have job security
To receive a fair wage that reflects their contribution to the business’s success

stakeholder objectives
external
Lenders To receive interests payments when due
To have borrowing repaid by the due date
suppliers To receive prompt for goods supplied on credit
To be treated fairly and not be forced to reduce their prices by businesses with strong
buying power
customers To receive good quality goods and after-sale service
To be charged a fair price which gives value for money
Government To be paid the correct amount of takes on time
To have minimal spending on unemployment benefits
Local community To receive benefits for the local economy such as employment and subsidizing of
community facilities
To avoid the negative impact of business activities such as noise, air and traffic
pollution
Objectives of public sector

Accessible- they can be used by everyone regardless of their location or income

Affordable- they must be cheaper than if the service was provided by the private sector. The service may
even be free at the point of use

Open to all- they must be available to everyone regardless of their income, class, ethnicity, culture,
religion and so on.