Set  the    Business  Objec/ves  

What  Objec/ves  do  Business  Set  ?  

Business  Survival  

Profit  

Returns  to  Shareholders  

Growth  of  the  Business  

Market  Share  

Service  to  the  Community  

Profit  

•  Pay  a  return  –  capital  invested  •  Provide  finance  –  further  investment  

Growth  of  the  Business  •  Usually  measure  by  the  value  of  sales  /output  

Growth  -­‐  Job  more  secure  (  Business  is  larger  )  

-­‐  Managers  :  Status  &    

-­‐  PossibiliDes  moving  into  new  Products  &        Markets  -­‐  Higher  market  share  from  growth  in  sales  

-­‐  Economic  of  scale  (  cost  <  )  

Returns  to  Shareholders  

•  Increasing  :  -­‐  Profit  -­‐  Share  price  

Market  Shares  

Service  to  the  Community  

•  Social  –  provide  jobs  for  disabled  /  homeless  •  Environmental  –  protect  environment  •  Financial  –  make  profit  and  invest  back  to  expand  social  work  

Business  ObjecDves  could  change  ?  

Why  Business  Objec/ves  could  change?  

Work  toward  higher  profits  

Higher  market  share  &  ObjecDve  of  earnings  higher  returns  for  shareholders  

Facing  a  serious  economic  recession  so  now  has  short  –  term  objecDve  of  survival  

Business  stakeholders  Owners  (Risk  takers)  

Profits  return  on  capital  

Workers  (facing  retrenchment)    

Incomes  job  security  saDsfying  work  

Managers  (employee  -­‐  decision  maker)  

Salaries  status  control  

Customers  (market  research  –  G&S)  

Goods  and  services  quality  good  value  

Government    (pass  law  –  protect  workers  &  consumers)  

Employment  taxes  increasing  naDonal  output  

Banks  (provide  finance)  

Business  able  to  pay  interest  and  repay  capital  lent  

Community  (environment  &  living  standard)  

Jobs  clean  environment  safe  product