Business Objectives and Stakeholders PDF

Business objectives and stakeholders. Businesses are classified to: Plivate Sector Public Sector Social enter Prise aiming to make a (government) aims (non profit ) Profit. to improve Living charity....

Business objectives and stakeholders. Businesses are classified to: Plivate Sector Public Sector Social enter Prise aiming to make a (government) aims (non profit ) Profit. to improve Living charity. Standards. Stakeholders: people who have interest in business activities. 1 owner to take Profit. 2 manage performance of the business. workers ask for a raise in wage and maintain job 3 Security. 4 Customers provision of product \ask for lower price\ ask for better quality. 5 government tax \ bus follows government regulation. 6 community protection of environment. 7 supplies to buy good from them and pay in time. 8 bank(lenders ,fianciers ) If the bus will pay back loan in time and pay interest. 2  Bus objectives why businesses Sell objectives; →Motivation for workers as they look for something to achieve. → It Provides (guide) Steps to be followed. → Good for evaluation (penalize / reward )assess Performance. Objectives Financial non financial 1-Max Profit: ①Personal Satisfaction Revenue- cost Independent and Control. money left after Paying total Costs ②achieve Social Objective. ①reward for investment. ③Customer Service (less ②used as a source of finance Complaints). Retained Profit used for expansion. ③ measure of success. 2-Growth: ①to increase market share. ②to increase sales. ③ to benefit from eco of scale. 3- Survive: ①in economic downturn ②new entrant (Strong competitor) 3  bus sectors Primary Secondary Terting extract natural Production Services resource Minning \ farming factories Doctor \ lawyer. retailers change in sector: 1 Depletion of resources, Primary Sector. 2 better living standards people move from rural area to urban work in Secondary and tertiary Sector. Primary. 3 Industurlization Secondary sector. 4 deindusturliZation Secondary Sector. 5 people tend to spend their income on Services. Tertiary sector. 4  Types of Businesses Private Public Owned by individuals. aims to owned by government aims to make Profit. Improve Living Standard of Community. *aims to max profit. *aims to Provide Welfare to the public. *usually sets high price. *provides affordable and essential services. sole treder private partrer limited ship types of businesses Franchis public limited 5 1 Sole trader: business owned by one individuals. ✓ Keep all the Profit no one to Share with it ✓ Takes all decisions. X takes all the risk alone. X Takes all the responsibility. X no one to Share capital ( Finance Is Limited). X Unlimited liability. 2 PartnerShip ✓ More Capital as each Partner invest capital. ✓Share risk. ✓Share knowledge and experience. ✓Share responsibility. X Share Profit. X disagreements may arise. X It takes time to take a decision. X Unlimited liability. 6  3 Limited Companies Private Public (doesn't mean private business) (doesn't mean government ) bus Sell Shares to family and sell Shares to the Public. friends Only. - Shareholders invest capital & get dividend ‫ توزيع ربح‬. - Shareholders elect (voting) Board of directors. who make the decision. - Shareholders have a Limited Liability. their personal assets not at risk. in case the business. failed / in debt. ✓ More access to capital. ( get more Cap as they sell share) ✓better image and Status. ✓Large So benefit From eco of Scale. ✓owners have limited liability their Personal assets not at risk. (It has Separate legal identity) X Large \ faces diseconomies of Scan X Risk of losing ownership when selling shares to share holders so they take control. X time consuming and costly to sell shares. 7  Not that: don't say: Takes time to take decisions X Owned by individually or government X 4 franchise: operating under the name of a well know business. Franchisee (seller ) Franchise (buyer) ✓Take fees from franchise. ✓Demand is high\ widely known ✓ take% of the profit. with loyal customer. ✓ free\ cheep expansion. ✓Free training. Free ads. supplies available by the X Can't keep all the profit. franchisee. X One bad management may harm overall image. X Can't meet consumers exact needs. while franchisor is more familiar of the market. X Pay fees to buy the name. X Pay part of the profit. 8