Professional Documents
Culture Documents
Answers to activities
Activity 5.1
a) Builder: survival increased competition is a danger to the continued existence
of this business.
Computer firm: growth eager entrepreneurs in an expanding industry will
want to become owners/managers of an expanding business.
Publisher: market share to maintain market dominance.
Cambridge IGCSE Business Studies 4th edition Hodder & Stoughton Ltd 2013 1
5 Business objectives and stakeholder objectives
Social enterprise: social enterprise objectives, such as achieving clean water for a
certain number of communities each year without harming the environment but
also breaking even.
b) Builder: lower prices.
Computer firm: offer new innovative goods and services.
Publisher: take over other publishing firms (if not prevented by the
government).
Social enterprise: arrange poor communities to take out micro loans to pay for
clean water facilities.
Other answers possible.
Activity 5.2
a) It is a public limited company and shareholders will expect dividends each
year and stable or increasing share price, so returns to shareholders is
important. Shareholders can replace directors if they are not satisfied with their
performance.
b) Returns to owners can only be achieved by targeting other specific objectives
such as increasing value of sales to remain largest soft drinks business.
Protecting the environment meets social responsibility objectives and might help
raise profitability in the long term too.
c) Students own answer based on own country knowledge/experience. Higher/
lower prices? Change products or brand image? Develop these or other points
in own country context.
Activity 5.3
a) A group with an interest in the operations of the business
b) Developing new oil fields to increase sources of oil supply to try to keep prices
down for customers but this may conflict with the aims of environmental groups
or local communities where the drilling might take place.
Cambridge IGCSE Business Studies 4th edition Hodder & Stoughton Ltd 2013 2