Business Objectives and Stakeholders Essays

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Business Objectives and Stakeholders

· The objectives of a firm means the goals of the business i.e. what the business wants to achieve.

· The objectives of business organisations will be shaped by the various stakeholders in the business. Those with the most influence will tend to set the objectives.

· It is important for a business to have well defined objectives. These will help the business to be clear about what it wants to achieve.

· For example,

Mission Statements

· These are descriptions of the overall aims of the business and its short term and long term objectives.

· They tend to be aimed at all stakeholders and may be printed in the Annual Report and
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In the long term it is unlikely that survival would remain the only objective, except perhaps for small businesses. Business owners tend to be ambitious and so pursue other objectives.

Stakeholders

Stakeholders are various groups of people who have an interest in the business. The interest each stakeholder has in a business will vary according to the nature of their ‘stake’. It could be argued that owners, managers, and employees are internal stakeholders as members of the business organisation. The remainder could be seen as external stakeholders because they are not part of the business.

4 different stakeholders of Fulford School are:

* Pupils-

* Teachers-

* Governors-

* Parents-

It is often difficult for a firm to survive during the early stages of trading there are several factors that may apply to a new business.

· Lack of experience which can often lead to mistakes

· A lack of resources

· Competition from established firm

· Unforeseen problems such as unexpected costs

· Limited recognition by customers

Profit maximisation is achieved where the difference between the total revenue earned by the business from sellngit6s produces and the total costs of the products is the greatest. It is obvious a business will aim to make as much profit as
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