Business Objectives and Stakeholders
Difference between objectives and aims
Business objectives refer to the short-term goals set by a business, whereas Business aims refer to the long-term goals set by a business.
Types of Business Objectives
- Profitability – It refers to the difference between the revenue and costs. Revenue should stay ahead of the costs of the business.
- Market – Sellers try to persuade customers; they use a lot of advertising and promotions to attract customers. Thus, they will be able to maximise the market share.
- Survival – It is the primary objective for start-ups or even for businesses that are facing bankruptcy
- Growth – It is the objective of some businesses to grow in size to be able to enjoy the advantages of economies of scale, such as a discount on bulk-buying.
- Service – The public sector firms and NGOs are not profit-motivated. They are interested in providing services for the benefit and the welfare of society.
Stakeholders
They can be affected by the organisation’s objectives, policies, or actions. There are two types of stakeholders: internal stakeholders (Workers, employees, or managers), which are entities founded in a business, and external stakeholders (Consumers, Suppliers, or investors), which are entities not within the business itself.
Interest of stakeholders
| Stakeholders | Interests |
| Owners | Profit |
| Employees | Salary and Security |
| Consumers | Price and quality |
| Directors | Growth and Salary |
| Government | The benefit of the welfare of the population |