Page 68 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 1 Understanding business activity

Statement D
Statement C
A manufacturer of fizzy drinks has been The owners of a clothing manufacturing
granted planning permission to build business have decided to have some of its
a new factory on land close to a local items produced in another country where
housing estate and primary school. When labour costs are much lower. This will increase
fully operational, the factory will provide profit margins and help to keep the price of
employment for 260 workers. their garments below that of competitors.

1 For each of the above statements identify the key stakeholders who will be affected by the action taken by each
business.
2 For each statement identify the positive and/or negative effect of the business activity on each of the stakeholders you

have identified in question 1.
3 For each statement identify and explain how there might be a conflict between any two groups of stakeholders.

TEST YOURSELF
1 What is meant by the term ‘business stakeholder’?
2 Identify five business stakeholders.
3 Identify and explain the objectives of any three business stakeholders.

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Objectives of private sector and public
sector enterprises

Earlier in this chapter you studied the main objectives of private sector
organisations (see page 58).
Public sector organisations have very different aims and objectives

from those in the private sector. The services and facilities they provide
must be:

■ Accessible – they can be used by everyone regardless of their location
or income.
■ Aff ordable – they must be cheaper than if the service was provided by the private
sector. The service may even be free at the point of use.
■ Open to all – they must be available to everyone regardless of their income, class,
Figure 5.5 Public
ethnicity, culture, religion, and so on.
sector organisations

TEST YOURSELF
Public sector organisations: Identify and explain two objectives of a public sector
see Chapter 4, page 55. organisation.