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Lecture 3

The document outlines the roles and influences of various stakeholders in a business, including owners, employees, customers, suppliers, lenders, the community, and the government. It emphasizes the importance of setting clear business objectives and mission statements to guide decision-making and strategy. Additionally, it discusses the constraints businesses may face and provides scenarios illustrating the impact of stakeholder interests on business operations.

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4 views

Lecture 3

The document outlines the roles and influences of various stakeholders in a business, including owners, employees, customers, suppliers, lenders, the community, and the government. It emphasizes the importance of setting clear business objectives and mission statements to guide decision-making and strategy. Additionally, it discusses the constraints businesses may face and provides scenarios illustrating the impact of stakeholder interests on business operations.

Uploaded by

sardormuminov3003
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TION TO

BUSINESS
AND
MANAGEM
ENT
MODULE

Week 3: Business
Objectives and
Strategy I
LEARNING OUTCOMES
1. Discuss the stakeholders
in a business, and what roles
and influences they exert
within the business
environment.
2. Analyze the objectives of
various stakeholders, and
what implications these
differences have for
business decision-making
and strategy
STAKEHOLDERS
•Business activity creates
jobs, prosperity and wealth and
who benefits from those?
•Stakeholders – a person or a
party, with an interest in the
success of a business
•They can be internal (owners,
workers) or external
(government, suppliers,
customers, local community)
OBJECTIVES OF STAKEHOLDERS
•Owners – want best possible ROI, want to see business
grow and increase return
•Employees – want the highest wage, bonuses, job
security, holidays, interesting and challenging job, etc.
•Customers – best quality products at lowest prices,
product innovation (better products yearly), customer
service, ethics.
•Suppliers – regular profit, repeated orders, customer
increase, timely payments, build long-lasting
relationships.
•Lenders – a bank wants agreed amount of money to be
paid on time.
•The community – increase in quality of life, job
opportunities, lower crime, sponsorships from business.
•The government – employment, tax, export – helps to
improve trading position.
OBJECTIVES AND MISSION
•A business needs target or sense of what it wants to
achieve
•Apart from making profit, it needs a mission
statement which gives a general idea of what business
exists to do and its purpose is to set this down for the
benefit of all stakeholders.
• Examples: Apple - “to bring the best user experience
to customers through innovative hardware, software,
and services.”. Google - to organize the world's
information and make it universally accessible and
useful. LinkedIn - connect the world's professionals to
make them more productive and successful. BMU - to
provide British quality management education with a
clear path to professional success through excellent
teaching, strong industry links as well as globally
recognized qualifications in business, finance,
accounting, and related disciplines.
•Any other examples?
SETTING OBJECTIVES
•Think of a goal as a broad, long-range
accomplishment that the organization
wants to attain and to think of an
objective as a specific, short-range
target designed to help reach that
goal
•Businesspeople are often advised to
make their goals and objectives
“SMART,” as in specific, measurable,
attainable/agreed, relevant, and time
limited
•For Qatar Airways it can be: By
December 2026, enhance the flight
booking experience by implementing
a new mobile app that increases
customer satisfaction by 15% and
boosts online bookings by 20%
AIMS/GOALS
•Aims/Goals - more specific than mission: survival,
breaking even, share of the market, profit, ROI,
company growth
•Objectives – companies seek to achieve their main
goals or aims by setting various specific objectives: it
gives direction, possible motivation to employees,
helps to control exiting and future operations in the
business
•Strategic objectives – plan that consists of several
strategic objectives: achieve 10% growth in sales
within 3 years. To reach this goal, the business’s
strategic objectives might be: a)increase productivity
in business to reduce costs and increase sales via
lower prices, b)sell its products in new markets.
•Tactical objectives – short-term objectives to achieve
strategic objectives. Usually day-to-day operations:
advertise and merchandise its products in a chosen
areas for 6 months, reduce costs, etc.
Mission Goals/Aims: Strategic Objectives Tactical Objectives
Statemen (SMART): (SMART):
t:

“to bring Within the next 12 months,


the best Enhance the By December 2026, launch form two cross-
user integration of two new innovative functional development
experience hardware, software, products that seamlessly teams, allocate a budget
to and services to integrate hardware, of $200 million, and
customers elevate user software, and services, complete prototypes
through experience. aiming to increase and initial user testing
innovative customer satisfaction for the first product by Q4
hardware, scores by 10% and 2025, ensuring alignment
software, expand market share by with customer needs and
and 5%. technological feasibility.
services.”
Design Aims/Goals, Strategic and Tactical
Objectives for the following Businesses

"We bring the culture of modern retail while preserving the best
national traditions."

"To refresh the world... To inspire moments of optimism and


happiness... To create value and make a difference."
CONSTRAINTS
•INTERAL:
A lack of finance to meet the chosen
demands
Poor communication within business
A conflict of interests between departments
within business
An industrial dispute with the workforce
•EXTERNAL:
Change in the law that affect the operation of
business
The state of the economy
The behavior of competitors
Opinions or behavior of external stakeholders
BUSINESS SCENARIOS
1. Scenario: A company is considering implementing
cost-cutting measures, which may include layoffs and
reducing employee benefits. Stakeholder Groups:
Employees, Managers, Shareholders, Labor unions (if
applicable), Community members.
2. Scenario: A business is expanding its operations
and plans to open a new branch in a residential
neighborhood that may result in increased noise and
traffic congestion. Stakeholder Groups: Community
members (residents), Local government officials,
Business owners in the neighborhood, Customers,
Employees.
3. Scenario: An online clothing retailer is considering
sourcing its products from a new supplier known for
cheap labor practices in another country. Stakeholder
Groups: Consumers/customers, Employees, Human
rights activists, Shareholders/investors, Local
community members in the sourcing country.
SUMMARY
1. Discuss the stakeholders in a
business, and what roles and
influences they exert within
the business environment.
2. Analyze the objectives of
various stakeholders, and
what implications these
differences have for business
decision-making and strategy
HOMEWORK

•CHATPERS 5 AND
6
THANK
YOU
FOR
ATTENT
ION

-one of the world's leading experts on leadership. A


lecturer, consultant, and writer, Professor Bennis has
been an advisor to four U.S. presidents, including John
F. Kennedy and Ronald Reagan.

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