O Levels Business Chapter 5 PDF

Date: :Busines Stakeholders objectives num businesses set objectives ? ·. Clear direction to the and 1...

Date: :Busines Stakeholders objectives num businesses set objectives ? ·. Clear direction to the and 1 management employees. It the managers and employees. 2 gives a sense of purpose to work.. It help the to assess the performance of its 3 managers workers. Immun objectives set by the Business' ① Profit maximisation : a business set this objective so that they are able to : ① Pay a return to the shareholders. ② to pay all the costs. ③ to reinvest into the business. 2 Survival = a business set its objective to survival when there is - : ① Competition in the market. ② Economic changes such as Recession. ③ Uncertain conditions foreg war , pandemic Saifullahajazofficial Saifullahajazofficial Knowledge Junction by Sir Saifullah  Date: 3. Return to shareholder = a business set this objective of an increase in return to shareholders so that the , shareholders are motivated to invest more. the m increase return to share holders :- > Dividends. 1 by increasing the Profit -. $ 10 x 500 = > $5000 C by increasing the share price. 5) 15 x 500 => $7500 ↳ 2500 gain. n. Growth => a business set growth as an objective to: - um ↓ 1. increase profits when the decrease the. 2 to cost of production. business increases to increase its 3. influence in the market its size. 4 to increase market share. to reduce competition. 5.. 5 Increasing unum Market share : - a business wants to increase its market share that it remains and , so competitive become a market leader. It is calculated i by sales of business x100 sales of industry Saifullahajazofficial Saifullahajazofficial Knowledge Junction by Sir Saifullah  Date: Sales s clothing industry. 16 67 % J - > - + Al-Karam 600 33 33 %. + Khaadi 800 44-44 % + Bonanza 100. 5 55 % 1800 J. Ms = Sales => · of Business x100 sales of industry => 300 x 100 = 16 67 %. 1800 Ak => x100 = 33. 3 s Providing community services :- a business set. were this objective to give back to the society : ① Socially > - by providing job to the unemployed and disadvantaged people. ⑥ Economical - reinvesting the money into business to help others. ③ Environmental e pollution decrease/using green production methods. Saifullahajazofficial Saifullahajazofficial Knowledge Junction by Sir Saifullah  Date: business objectives change mmmdo time ? over Fastchanging Business. 1 operate in a dynamic environment and it keeps on changing. Business has achieved. 2 its objectives. Owners and 3 objectives changed so the business objectives. , as. well Stakeholders the individuals individuals of > or group * are - that are affected by the business decisions and interest in , therefore they the business. keep an consumers< price ↑, Demand Demand + Quality + > - motivated ! Employees Iwaged > - < Technology 1- > might lose job. Saifullahajazofficial Saifullahajazofficial Knowledge Junction by Sir Saifullah  Date: stakeholders mo · ① Owners Internal ② provide services to the business Internal Employees > > ③ provide with ideas and leaduship Internal. managers , > - ① Consumers - buy from the business < External. ⑤ Suppliers/Lenders provide credit/loans < External. ⑥ Local community taxessurroundings of the business External. < -> ⑦ Government. from the business > -. > - External Saifullahajazofficial Saifullahajazofficial Knowledge Junction by Sir Saifullah