1.5.
1
Activity 1
Students discuss in groups for five minutes about their life
goals for next ten years -What they want to achieve.
The speaker will share the common objectives of each
group.
.
ACTIVITY 2
Identify the objectives of these businesses
OBJECTIVE is-
• An objective is an aim or a target to work towards to
be achieved.
• Setting objectives is very important for all businesses-
small, large, new or established.
• Objectives help to make a business successful,
although does not guarantee success.
• The business need to set clear and effective objectives.
They often use SMART criteria
• Public sector organisations have different objectives
than those in private sector.
• Objectives change over time.
Objectives need to be SMART
Specific- Objectives should focus on what the business does and should
apply directly to that business; example – an airline may set an objective
about level of seat occupancy on its planes
Measurable- Objectives that have a quantitative value are likely to prove
to be more effective; airline may aim to achieve 85% of seat occupancy
in all it’s flights
Achievable- Setting objectives that are almost impossible in the time
frame given will be pointless; airline needs to discuss with Marketing
department to see if objective can be met.
Realistic- Objectives should be realistic when compared with the
resources of the business and should be expressed in terms that are
relevant to the people who have to carry out the objectives; airline seat
occupancy will need advertising campaign , sales executives to be
explained about their sales target.
Time –specific- A time limit should be set when an objective is
usiness objectives in private sector
• Survival- for new business, when economy is in recession, more
competitors
• Profit- needed for paying a return to the owners and also to provide
finance for further investment;
• Returns to shareholders – This can increase by increasing
profits/dividends and also increasing share prices;
• Growth – meeting customer needs, more market share, cost
advantages, new products and new markets.
• Market share –good publicity, more influence on suppliers and
customers.
• Service to the community – providing more jobs, taking care of
environment – social work.
Corporate Social Responsibility
(CSR)
Business taking responsibility for the
impact their activities might have on
society and the environment.
CSR has become an important objective
for businesses due to-
• The activity of pressure groups
• The media
• Trade Unions / worker representative
groups
• Laws by Governments at local,
national, international level
(Pressure Groups- Organisations of like
minded people who put pressure on
businesses and government to change their
policies)
What is a Social Enterprise
Social enterprise is a business with social objectives that reinvest most of its
profits back into the business or into benefitting the society at large.
The people operating the social enterprise often set three objectives for their
business:
• Social: to provide jobs and support for disadvantaged groups in society, such
as the disabled or homeless.
• Environmental: to protect the environment.
• Financial: to make a profit to invest back into the social enterprise to expand
the social work that it performs.
Stakeholders
Internal External
• Customers –value for money, safe products, higher
quality, service and maintenance.
• Owners/Shareholders – profit,
growth, return on capital, increase in • Competitors – innovation, awareness and
value of business. response, to compare performance.
• Workers/employees – Salaries, job • Government – Employment, taxes, standards to
security, job satisfaction. meet, customer protection, avoid business
practices, financial stake (PPP), GDP increase.
• Managers/Directors – Salaries, job
security, growth of business for more • Community/Pressure groups –Employment, job
power. security, environment, safe products.
• Banks /Lenders– safe capital, timely interest.
• Suppliers/Creditors - whether they will get timely
payment for any good they have supplied to
business.
