(a)Explain one objective each of the following TSE stakeholder groups might have. Shareholders: . . . Suppliers: . . . Employees: . . . Customers: . . .
Exam No:0450_s25_qp_22 Year:2025 Question No:2(a)
Answer:
Award 1 mark for each objective (max 4).
Award a maximum of 1 additional mark for each explanation of the objective applied to this context.
Relevant objectives might include:
Shareholders:
- To receive dividends - from increased profit when more tennis balls are sold
- To increase the price of their shares
- To increase profit
- To increase market share
- To increase revenue/sales
Suppliers:
- To increase sales/revenue/profits from selling its raw materials - such as plastic to make the rackets
- To be paid on time/paid back
Employees:
- To receive higher wages - when working full-time in the factory
- To have a secure job / no risk of being made redundant
- To have good working conditions
- To have opportunities for promotion - as looking into a new market in another country
Customers:
- To receive a quality product / doesn't break easily - when playing badminton
- To pay a low price for the product
- To get it delivered on time
For example: To receive dividends (1) from increased profit when more sports equipment is sold (app).
Application could include: sports equipment; skilled and full-time workers; sells in 30 countries; factories in 10 countries; two companies that may be taken over; want to increase market share; a well-motivated workforce is important; uses new technology and automation for flow production; rubber; plastic; high-quality products.
Award a maximum of 1 additional mark for each explanation of the objective applied to this context.
Relevant objectives might include:
Shareholders:
- To receive dividends - from increased profit when more tennis balls are sold
- To increase the price of their shares
- To increase profit
- To increase market share
- To increase revenue/sales
Suppliers:
- To increase sales/revenue/profits from selling its raw materials - such as plastic to make the rackets
- To be paid on time/paid back
Employees:
- To receive higher wages - when working full-time in the factory
- To have a secure job / no risk of being made redundant
- To have good working conditions
- To have opportunities for promotion - as looking into a new market in another country
Customers:
- To receive a quality product / doesn't break easily - when playing badminton
- To pay a low price for the product
- To get it delivered on time
For example: To receive dividends (1) from increased profit when more sports equipment is sold (app).
Application could include: sports equipment; skilled and full-time workers; sells in 30 countries; factories in 10 countries; two companies that may be taken over; want to increase market share; a well-motivated workforce is important; uses new technology and automation for flow production; rubber; plastic; high-quality products.
Knowledge points:
1.5.1.1. Need for business objectives and the importance of them
1.5.1.2. Different business objectives, e.g. survival, growth, profit and market share
1.5.1.3. Objectives of social enterprises
1.5.2.1. Main internal and external stakeholder groups
1.5.2.2. Objectives of different stakeholder groups
1.5.2.3. How these objectives might conflict with each other, use examples
1.5.3. Differences in the objectives of private sector and public sector enterprises
Solution:
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