Business Development – Learning Key Points About Stakeholders
The main aim of an organization is to maximize profits for all stakeholders or owners while at the same time maintaining corporate social responsibility. Some may wonder if profit is the only purpose for which an organization exists. Many organizations exist for the benefit of their employees, communities, and the environment. The latter is not always considered as a motivation for the latter.
The objective of any business should be to increase the overall productivity, market share, and profits of the company. One way of achieving this is through effective departmentalization. An effective organization should have departments that work towards meeting specific goals. These departments would then form the basis for different functions within the organization.
When planning for departmentalization, it is essential to identify the learning objectives that each division must achieve. It should also be determined what each division’s role is supposed to be. Within each department, there are various roles and responsibilities. Each division has unique learning objectives that form the basis for carrying out its function. Therefore, a good plan for departmentalization should first be formulated on learning objectives of each department in the firm.
After determining the learning objectives and functions, the next step for effective organization and departmentalization is identifying the key terms used in these departments. It is crucial for a firm to effectively learn the key terms used by employees in the various departments in the firm. There are several reasons why knowing the key terms is important.
First, the key terms used by employees such as customers, suppliers, staff, and colleagues play a great role in defining the business strategy and the business model. Learning the business strategy and business model allows a firm to identify their target market. This in turn, allows them to come up with an effective marketing plan that targets a specific group of people who may be their customers. This will then lead to increased profits and customer satisfaction.
Second, when the company has identified its target market, they can now identify the business processes and the key points of the business model they are operating under. Next, they can define their strategic goals and objectives. These key points will then form the basis of the organizational vision that becomes the business strategy. As business strategy becomes a reality, it gives a clear focus on the social responsibility of the company towards its stakeholders.
Third, effective management focuses on the present value of the firm. When the firm is able to create a profit that is more than what is required to cover the costs of doing business, this is called excess profits. The firm will then have to increase the level of profits to make up for the excess profits.
Finally, a firm should set its fixed and variable costs depending on the present value of the profits. These include the price for capital, labor, and environmental. These costs should be set so that they bring about the increase in the firm’s total revenue. If all these measures are properly balanced, a firm will be able to reach its profit maximization goal.
These four key points and principles underlie the learning objectives of business development. The learning objectives will define how a firm develops and increases its profit. At the end of the learning process, the firm should be able to produce a profit that is higher than the discounted cash flow. The standard deviation of the weighted average cost of capital employed in the capital budgeting procedure should also be considered as one of the key takeaways from the learning objectives.
These four points may sound simple and easy. However, these are actually the building blocks of a profitable business. They help firms reach the profit maximization stage. A firm cannot achieve its desired profits if the discounted cash flow is lower than the discounted profit. Likewise, if the discounted profits are higher than the investment, it is hard to realize the investment’s full profit.
In order for a firm to achieve the key takeaways from the learning objectives, it must engage in business relationships. A firm must make sure that its stakeholder’s needs are understood. Moreover, the stakeholder must be given timely feedback on the business processes and strategies. The stakeholder’s inputs can be used as a basis for business improvements or for new stakeholder ideas and insights. These inputs also play a major role in helping firms create stakeholder relations that are mutually beneficial to both the firms and the stakeholders.
A firm should establish rules for defining and measuring stakeholder involvement. One such rule is the five-fold consideration: the firm must first identify the stakeholders, the scope of stakeholder participation, the importance of stakeholder involvement for each individual stakeholder, and finally, a plan for providing value to stakeholders. This framework provides a framework for determining when stakeholder analysis should be done. Stakeholder theory can also be applied to a corporation by creating an equity framework by identifying equity holders, identifying the company’s risk in releasing shares to them, and monitoring the extent of stakeholder involvement.