1. Stakeholders Shareholders Directors Employees Customers Suppliers
Creditors
Government
Society
Local community

2. Sales as an aim High sales Large business concern
Individual satisfaction and power
Reduced sales for competitors
Managers incentive to increase sales before retirement – problems of over expansion
Absolute sales figures meaningless
Exercise 1
‘by itself, volume of sales tells little about performance, results or the future of the business’ (Drucker) Discuss

3. ROCE as an aim
Capital invested in a business could be invested in alternatives – ‘Opportunity cost’
What would the return be in its next best use?
Tight objectives and operational standards to ensure it meets the financial requirements
Focus on providing shareholder value
Public sector return compared to what it could have earned in private sector
Regulators set ROCE targets to control profiteering and to stop the exploitation of customers

4. Growth as an aim Propensity to accept risk Overtrading
Diseconomies of scale
Taking on existing concerns
Change management
Exercise 2
Discuss methods of growth

5. Level of Service as an aim
Identifying and satisfying customer needs and keeping them satisfied
To contrast intangibles and tangibles
An extra you get when you buy a product
Relationship between supplier and customer
Customer more demanding and sophisticated
Competitive weapon with which to differentiate sales
Strategy to create a value proposition
Example - Petrol industry customer service

6. Customer or user perceptions
What do customers and users think and feel about an organisation?
Perception drives purchases and customer loyalty
The best way to create customer belief in a particular product is to ensure total quality systems at every stage at which the product, brand and the company comes into contact with its many publics