2. SG BUSINESS MANAGEMENT UNIT 2-5

3. Business Management Unit 2.5 What is a successful businessl? Unit 2-5 Contents F G  Achieving objectives  Keeping owners satisfied  Success for business compared to charity  Different aims in different sectors C  Identify competing aims of stakeholders

4. Business Management Unit 2.5 What is a successful businessl? Achieving Objectives Sole Trader  survival, make a profit/decisions Partnership  share responsibility, grow Private Ltd Co  maximise sales/profit, bigger share of market Public PLC  maximise sales, grow, keep shareholders/customers/staff happy Charity  help poor/homeless, raise awareness NOTE – Different to private sector! these will depend on the type of business:

5. Business Management Unit 2.5 What is a successful businessl? Achieving Objectives Public Sector  good relationship with its stakeholders, keeping to budget Private Sector  maximise sales/profit, bigger share of market, high sales Voluntary  cover costs, increase donations, raise awareness and will depend on the business sector:

6. Business Management Unit 2.5 What is a successful businessl? Success for Business How do you judge success?  Profits increasing  Demand increasing  Profits better than industry average  Growth  Survival  Good relations with customers, workers, etc  Increased donations/volunteers (CHARITY)

7. Business Management Unit 2.5 What is a successful businessl? Keeping owners satisfied? Every business has owner(s) and stakeholders Sole Trader  Owner, customer, supplier Partnership  partners, creditors, bank Private Ltd Co  private shareholders, board of directors, managers, government Public PLC  shareholders, board of directors, workers, community, government, consumers Voluntary  trustees, donators, volunteers,

8. Business Management Unit 2.5 What is a successful businessl? Keeping owners satisfied? What do stakeholders want? Manager  high profit/salary, control costs/staff, keep workers/customers/community happy Customers  good price, delivery, quality Employees  good wages, job security, career prospects, Owners  make own decisions, survive/make profit, enjoy work

9. Business Management Unit 2.5 What is a successful businessl? Keeping owners satisfied? What do stakeholders want: (cont) Shareholders  dividend, high share price Banks  get loan etc paid back, make interest by lending to business Suppliers  paid, more orders Government  jobs, tax Community  no pollution, jobs, car parks

10. Business Management Unit 2.5 What is a successful businessl? Competing Aims? C Stakeholders’ aims may not be compatible: Owners want to make profit BUT customers want low prices Shareholders want high dividends BUT board of directors want to be spend money on R&D Local community wants less noise BUT managers don’t want to spend money on sound proofing

11. Business Management Unit 2.5 What is a successful businessl? Stakeholders’ aims may not be compatible: Suppliers want paid quickly BUT owner wants to pay later Bank/building society wants income from business loans BUT customers want low interest rates Managers want to cut costs BUT workers want overtime Competing Aims? C