Key definitions
Stakeholder — a party directly affected by or interested in a business' activity.
Business objectives — the goals that a business aims to reach. The importance of each objective changes depending on the state of the business, and external factors like the economy.
Why business objectives matter
- Increases motivation
- Unites the business towards the same goal
- Helps to track business performance
- Decisions are made quicker
Objectives by sector
Private sector objectives
- Profit
- Survival
- Growth
- Market share
Public sector objectives
- To improve the wellbeing of citizens
- To improve accessibility to services and goods
Social enterprises
- Social enterprise — an enterprise that aims to simultaneously make a profit and work towards a better society.
Stakeholders
Stakeholders can be grouped as internal or external.
- Internal — stakeholders that are part of a business.
- External — stakeholders that are outside a business.
| Internal | External |
|---|---|
| Employees | Suppliers |
| Managers | The local community |
| Shareholders | Customers |
| Etc. | Etc. |
How stakeholder objectives conflict
Different stakeholder groups often have conflicting objectives.
Example: Shareholders may want an increase in profit, which results in the redevelopment of a playground. The local community is against this idea, as local children use the playground often.