1.5 Business objectives and stakeholder objectives Online Test

Private sector enterprises aim primarily for profit maximisation and shareholder value.

Business objectives are the specific, measurable goals a company sets to guide its operations and measure success.

Business objectives vary based on priorities and strategies.

While private sector enterprises operate in a competitive market, striving for financial gains, public sector enterprises operate in a regulated environment, often with a focus on equitable service delivery and meeting the needs of citizens.

which is not an internal stakeholder

Stakeholders are individuals or groups with no interest or “stake” in a company’s operations, success, or outcomes.

public sector enterprises prioritise public service, societal welfare, and fulfilling government mandates. Their objectives revolve around providing essential services, addressing societal needs, and ensuring equitable access to services or utilities.

customers, suppliers and investors are external stake holders

Social enterprises aim to achieve both social and financial goals. Their objectives revolve around creating positive social impact while maintaining financial sustainability.

Employees, Management and Board Members are examples of external stakeholders

Profit objectives does not prioritise financial gains, optimising revenue and reducing costs to maximise profitability.

Growth objectives emphasise expanding operations, market reach, or product lines, aiming for increased revenue, customer base, or geographical expansion.

In essence, business objectives are vital for defining a company’s purpose, setting targets for growth, guiding actions, and evaluating progress toward achieving its vision. They serve as a roadmap for sustainable success and effective decision-making.