Chapter 4 Worksheet 1

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Chapter 4 Worksheet 1

Uploaded by

muhammadbinharoun

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Download as PDF, TXT or read online on Scribd

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Chapter 4 - Worksheet 1

Discuss the importance to an expanding business of

effectively communicating its objectives to its workforce. [12]
As a business expands, it becomes more important to communicate its
objectives clearly to the workforce. Objectives are the targets a business aims to
achieve, and when these are clearly communicated, employees understand the
direction the business is heading. This helps align everyone’s efforts towards the
same goals. If communication is unclear, employees may become confused
about what is expected, leading to inefficiency and mistakes.

As the business grows, its operations become more complex. For example, a
retail business expanding into new markets needs to make sure that employees
are aware of key objectives like sales targets and customer service expectations.
When employees know what the business is trying to achieve, they can work in a
way that supports those goals. Poor communication, however, may result in
employees not understanding what the company prioritizes, which can lower
productivity and lead to errors.

Good communication also helps motivate employees. When workers understand

how their roles contribute to the success of the business, they feel more involved
and are likely to be more engaged. This can also improve teamwork, as
employees are clear on how their tasks fit into the overall business goals. As a
result, the business is more likely to meet its objectives and grow effectively.

In conclusion, clear communication of objectives is essential for an expanding

business. It reduces confusion, improves productivity, and boosts employee
motivation, all of which are key for a business’s successful growth. However,
achieving effective communication can be challenging, especially in larger
organizations with multiple locations. Implementing regular updates, using
multiple communication channels, and ensuring feedback mechanisms are in
place can help overcome these challenges and ensure everyone remains aligned
with the business’s goals.
Analyze why mission statements are important to many
businesses [8]
Mission statements are important to many businesses because they provide a
clear purpose and direction. A mission statement explains what a business aims
to achieve and its core values, helping guide decision-making. This is crucial as it
keeps the business focused on its long-term goals, especially in a competitive
market.

For employees, a mission statement gives them a sense of purpose, showing

them how their work contributes to the business’s overall objectives. This can
increase motivation and productivity. For customers and investors, a mission
statement shows what the business stands for, which can improve its reputation
and build trust.

However, a mission statement is only effective if it is well-communicated and

followed in practice. A strong mission statement that is regularly reinforced can
influence the way the business operates. But if it is unclear or not meaningful, it
might be ignored by employees and have little impact on the business.

In conclusion, mission statements are important because they give direction,

motivate employees, and improve the business’s image. Their effectiveness
depends on how well they are integrated into the business’s daily operations.

Analyze why making a profit is not the main objective of all

private sector businesses. [8]
While making a profit is important for private sector businesses, it is not always
their main objective. Some businesses may focus on other goals, such as
providing high-quality products, acting ethically, or contributing to society. For
example, social enterprises or ethical businesses often prioritize helping people
or the environment over maximizing profits. They may choose to make a positive
impact, even if it means earning less money.

In some cases, businesses might prioritize growth and stability over immediate
profits. For instance, start-ups may invest heavily in new products or expanding
their market, which can lead to short-term losses but could result in higher profits
in the future. Similarly, some businesses may focus on customer satisfaction and
building loyalty rather than just making money right away, believing that a strong
reputation will lead to greater success in the long run.

Focusing only on profit can also lead to ethical problems, such as cutting costs in
ways that hurt employees or the environment. That’s why some businesses try to
balance making a profit with being socially responsible, which can improve their
reputation and build trust with customers and investors.

In conclusion, while profit is necessary for a business to survive, it is not always

the main goal. Many businesses focus on long-term growth, ethics, or social
responsibility, depending on what they value most.

Discuss why the shareholders of a public limited company

might disagree with having corporate social responsibility
(CSR) as a business objective [12]
Shareholders of a public limited company might disagree with having corporate
social responsibility (CSR) as a business objective because it could take the
focus away from maximizing profits. Shareholders invest in the company
expecting to earn a return on their investment, either through dividends or an
increase in the share price. If the company spends a lot on CSR activities, like
environmental projects or supporting the community, this can reduce profits in the
short term, meaning less money is available to pay dividends.

Some shareholders may also feel that CSR is not the company’s responsibility.
They might believe that the business should focus on making money and
improving efficiency, not on social or environmental goals. For example, choosing
more sustainable materials or reducing waste might be more expensive, and
these shareholders could see these costs as unnecessary if they don’t directly
lead to higher profits.

Another concern for shareholders is that focusing on CSR could distract the
business from its main goal of competing effectively in the market. If managers
spend too much time and money on CSR, they might miss out on chances to
expand the business, develop new products, or cut costs, all of which could
improve financial performance. Shareholders who are mainly interested in quick
financial returns might see this as a downside.
However, some shareholders might support CSR if they believe it could improve
the company’s reputation and customer loyalty, leading to higher profits in the
long run. But for those focused on short-term profits, CSR objectives may seem
unnecessary.

In conclusion, shareholders might disagree with CSR as a business objective

because it can reduce profits, increase costs, and potentially distract the
company from its financial goals. While CSR could bring long-term benefits, like
a better reputation, shareholders interested in immediate returns might see it as
a disadvantage.