Edexcel Business A Level Revision

Shareholder and Stakeholder objectives can clearly be in conflict, as when wages rise at the expense of lower profits and dividends, organisational growth is at the expense of short-term profits, and expansion of production may cause disruption to the local community. Additionally, conflict can occur between stakeholders and for a business this can be a hard task to meet all of the needs of the stakeholders. This occurs when the actions or objectives of one group of stakeholders may weaken the power of another. Examples below.  However, stakeholder needs may also overlap in which case they can join together to increase their power, for example the community may support the employees when taking industrial action in order to strengthen their voice.

Stakeholder - is any individual or group with an interest in the actions and decision making of the business. A SHAREHOLDER IS A STAKEHOLDER INTERNAL STAKEHOLDER EXTERNAL STAKEHOLDER Employees Customers Managers Suppliers Owners Shareholders Shareholders Government Local community Society Creditors (owes money to a business) STAKEHOLDER MAIN INTERESTS Shareholders/owners Return on investment and profits and dividends Success and growth of the business Proper running of the business Managers/employees Rewards, including basic pay and other financial incentives Job security and working conditions Promotion opportunities and job satisfaction and status – motivation, roles and responsibilities Customers Value for money Product quality and customer service Suppliers Continued, profitable trade with th...

Mission Statement - is a short term statement of the company's vision and values which helps to set aims and objectives and also detail the overall reason for its existence. This enables employees, managers and customers and possible some suppliers to understand the conduct of the business. It is a statement of purpose, such as 'grow our market share in the UK'. Nike's mission statement is; "To bring inspiration and innovation to every world athlete". Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific) A good mission statement should differentiate the business from its competitors, be relevant to all major stakeholders, define the market in which the business wants to succeed, and inspire and motivate stakeholders, especially employees. It should also be brief, realistic, based on a consultation with stakeh...

Business Objectives - is a goal set by a business, usually in the medium to long term. They can be set at any level of the business and can cover financial and non-financial issues important to the business's success Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific) Mission statement - is a short term statement of the company's vision and values which helps to set aims and objectives. This enables employees, managers and customers and possible some suppliers to understand the conduct of the business. It is a statement of purpose, such as 'grow our market share in the UK'. Nike's mission statement is; "To bring inspiration and innovation to every world athlete". Aim - is a generalised statement of what the business plans to achieve in the longer term. A goal or purpose of the business for the future, to inspir...