Business objectives and stakeholders
Introduced| English | Meaning |
|---|---|
| objectives/ɒbˈdʒektɪvz/ | Specific outcomes that a person or organisation aims to achieve. |
| stakeholder/ˈsteɪkhəʊldə/ | A person or group with an interest in, or affected by, an organisation's activities. |
| survival/səˈvaɪvl/ | Continuing to operate as a business rather than closing or failing. |
| profit/ˈprɒfɪt/ | Total revenue minus total cost. |
| market share/ˈmɑːkɪt ʃeə/ | A business's sales as a proportion of total sales in its market, measured by value or volume. |
| internal/ɪnˈtɜːnl/ | Within an organisation, system or specified boundary. |
| external/ekˈstɜːnl/ | Outside an organisation, system or specified boundary. |
| suppliers/səˈplaɪəz/ | Businesses or people that provide goods, materials or services to another organisation. |
Goals and the people who care
- A business needs goals to aim for — and it affects many groups of people along the way.
- These goals are its objectives 目标; the affected groups are its stakeholders 利益相关者.
Stakeholder interest lab
See how different stakeholders judge the same business decision.
The most likely main objective of a brand-new business is:
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New firms prioritise survival first.
Business objectives
- Common objectives: survival 生存, profit 利润, growth, market share 市场份额, and customer service.
- A new business usually prioritises survival; later, profit and growth.
Internal 内部 and external 外部 stakeholders all have an interest in the business
A stakeholder is:
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Stakeholders are all groups with an interest in the firm.
Which is an internal stakeholder?
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Employees, managers and owners are internal.
Customers, suppliers and the community are ______ stakeholders.
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They are outside the business, unlike employees and owners.
Stakeholders
- A stakeholder is any group affected by the business.
- Internal: owners, managers, employees. External: customers, suppliers 供应商, government, the community.
Each stakeholder group has a different interest in the business.
The interests of different stakeholders can conflict with each other.
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For example, employees want higher pay while owners want higher profit.
Stakeholder conflict
- Their aims often clash: workers want higher pay, owners want higher profit.
- Managers must balance these competing interests.
Stakeholder is wider than shareholder. A shareholder owns part of the company; a stakeholder is anyone affected — workers, customers, suppliers and the community too.
You've got it
- objectives include survival, profit, growth, market share, service
- a stakeholder = any group affected (internal + external)
- stakeholder interests conflict, so managers must balance them
Write from a stakeholder conflict
- A plan raises profit by 20000 and cuts 6 jobs.
- Shareholders and workers can both be stakeholders and still want different outcomes.
A plan would raise profit by 20000 and cut 6 jobs. Why can shareholders and workers both be stakeholders, and why may they disagree?
A stakeholder is anyone affected by the business. Owners are one group among workers, customers, suppliers and the community.
What are the workers who would lose their jobs?
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The workers are affected, so they are stakeholders. They do not become shareholders just by being employed.