Business Objectives & Stakeholders
Case Study: EcoFashion (Organic Clothing Brand)
📋 The Client Brief
EcoFashion sells clothes made from expensive organic cotton. They're successful, but there's tension:
- Shareholders demand higher dividends
- Workers want a pay rise
- Customers complain prices are too high
The CEO can't please everyone. This is stakeholder conflict.
1The Toolkit: Business Objectives (AO1)
What does a business want to achieve?
2The Toolkit: Stakeholders (AO1)
Stakeholders: Anyone affected by the business's decisions.
⚡The Tug-of-War: Stakeholder Conflict (AO3)
EcoFashion's CEO is considering: "Should we increase worker wages?"
Move the slider to see how different groups react:
💡 The BLT Chain (Analysis):
Because wages increase to 50%...
Leads to higher costs, so prices must rise or profits must fall...
Therefore a balanced approach keeps everyone moderately satisfied.
📅The Objective Shifter: Business Lifecycle (AO2)
Objectives change as businesses grow. Click each year to see the primary objective:
👥The Stakeholder Map: Who Wants What? (AO2)
Click each stakeholder to reveal their objective and power:
⚠️ Examiner's Trap
✓ Say: "The business's objective is profit maximization to provide returns to shareholders."
✓ Say: "Stakeholder conflict occurs because workers want higher wages while shareholders want higher dividends."
✓ Say: "Market share is 25% (calculated as business sales ÷ total market sales × 100)."
🎓 Key Takeaways
- ✓Business objectives change over time (Survival → Profit → Growth/Market Share)
- ✓Stakeholders have different (often conflicting) objectives
- ✓Stakeholder conflict forces managers to make trade-offs and prioritize
- ✓Every decision helps some stakeholders and hurts others
Sign In to Keep Going
You've reached the end of the free preview. Sign in — and upgrade to Plus or Pro — to keep going with Business.
Full Access
Unlock all 44 lessons