Chaper 5

1. Setting business objectives is important because of some benefits

- They give workers and managers a clear target to work towards and this helps motivate -
people.
- Taking decisions will be focused on: 'Will it help achieve our objectives?"
- Clear and measurable objectives help unite the whole business towards the same goal.
- Business managers can compare how the business has performed to their objectives to see
if they have been successful or not.
2. Different business objectives
- business survival
- profit
- returns to shareholders
- growth of the business
- market share
- service to the community.
3.
Internal stakeholder of the business and their concern
Owners - share of the profits so that they gain a rate of return on the
money put into the business
- growth of the business so that the value of their investment
increases

Workers regular payment for their work

contract of employment
job security-workers do not want to look for new jobs
frequently
job that gives satisfaction and provides mativation

Managers high salaries because of the important work they do

job security-this depends on how successful they are
growth of the business so that managers can control a bigger
and better known business. This gives them more status and
power

External stakeholder and their concern

Customers safe and reliable products
value for money
 well-designed products of good quality
reliability of service and maintenance

Government wants businesses to succeed in its country.

Successful businesses will employ workers, pay taxes and
increase the country's output
expects all firms to stay within the law-laws affect business
activity

The whole community jobs for the working population

production that does not damage the environment
safe products that are socially responsible

Banks expect the business to be able to pay interest and repay capital
lent-business must remain liquid

4. Business objectives of public sector

Financial: Meet profit targets set by government
Service : Provide service to the public and meet quality targets set by government
Social: Protect or create employment in certain areas
5. There are business conflicts because business can’t satisfy the objects of all groups.And a
business objective might satisfy some stakeholders but not others.