Study Notes
Businesses set objectives to achieve specific targets, which can change over time due to various factors. Business objectives — specific targets or goals set by an organization to achieve. Example: A company aims to increase its market share by 10% in the next year. Stakeholders — individuals or groups with a direct interest in a business's performance and activities. Example: Employees, customers, and shareholders are all stakeholders with different objectives. Social enterprise — a business with social and environmental objectives, alongside financial goals. Example: A company that reinvests profits to support local community projects.
Exam Tips
Key Definitions to Remember
- Business objectives
- Stakeholders
- Social enterprise
Common Confusions
- Mixing up the objectives of different stakeholder groups
- Assuming all businesses have the same objectives
Typical Exam Questions
- What are business objectives? Business objectives are specific targets or goals that an organization sets for itself to achieve.
- How do stakeholder objectives differ? Different stakeholders have varying objectives based on their interests in the business.
- Why might business objectives change? Business objectives can change due to market conditions, economic hardships, or achieving previous goals.
What Examiners Usually Test
- Understanding of different business objectives
- Knowledge of stakeholder roles and objectives
- Reasons for changes in business objectives