Business Objectives and Stakeholder Objectives

Business Objectives

A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim.
These objectives can vary from sustainable profit margins, return on investment, market leadership, to social responsibility and customer satisfaction.
They give the business a clearly defined target.
Plans can then be made to achieve these targets.
This can motivate the workers.
It also enables the business to measure the progress towards its stated aims.

A stakeholder in an organisation is anyone with an interest in its activities.
They include the business owner, shareholders, management, employees, customers, suppliers, financiers, governments, competitors, and the general public.
Each group will have their own set of objectives, expectations and interests.
Shareholders want to maximise their returns on investment.
Managers want job security, good working conditions, and career advancement.
Employees want fair pay, job security, good working conditions, and opportunities for promotions.
Customers are concerned with pricing, quality, and the reliability of the product or service.
Suppliers want consistent orders and prompt payments.
Governments want businesses to pay taxes and comply with regulations.
Competitors are interested in the market share, innovations, and marketing strategies of the business.
Community and environmental groups want businesses to operate sustainably.

Balancing differing stakeholder objectives can be a difficult task for businesses.
This is particularly true when their interests are in conflict. It is the role of management to balance these objectives as best as possible.
A business needs to take into consideration all its stakeholders when forming its objectives. Achieving a balance that meets most of their requirements will contribute greatly to its success.