A Level Business: Business objectives and Stakeholders in a business (Cambridge 9609) – Revision Notes

These notes condense sections 1.4 (Business objectives) and 1.5 (Stakeholders in a business) of the Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028. They are for AS Level topic 1 and are also needed at A Level. Read the full study guide for explanations and worked examples, then try the practice questions.

Other links: Cambridge A Level Business hub, printable checklist, free diagnostics, and the wider topic 1 revision notes.

1.4.1 Objectives: definitions

Term	Meaning
Objective	A specific goal a business sets itself
Private sector	Owned by individuals or shareholders
Public sector	Owned and run by the state or local government
Social enterprise	Trades to meet a social or environmental purpose; surplus mostly reinvested
CSR	Accepting responsibilities to society beyond profit
Triple bottom line	Economic (financial), social and environmental objectives together
Ethics	Moral principles that guide behaviour

Objectives by organisation

Organisation	Typical objectives
Private sector	Survival, profit, growth, market share, sales revenue
Public sector	Service to all, staying in budget, service standards
Social enterprise	Social or environmental aim, break even or small surplus

Why objectives matter

• Give direction and a common purpose.
• Allow performance to be measured.
• Help motivate staff.
• Provide a test for comparing options.

The chain, from broad to narrow

Mission statement, then aims, then objectives, then strategy, then tactics.

Level	Test to apply	Oakdrift Printworks example
Mission	Purpose and values, no number	“Print that people keep”
Aim	Broad, long term	Be known for quality in the region
Objective	Has a measure	Cut waste paper by 10% this year
Strategy	Long-term plan	Invest in newer presses
Tactics	Short-term action	Train operators on the new press in March

1.4.2 Decisions, targets and communication

Method: decision-making stages (standard form)

1. Set objectives.
2. Gather information.
3. Identify options.
4. Choose an option.
5. Implement.
6. Review against the objectives.

Objectives start the process, judge the options and act as the benchmark at review.

Why objectives change

• Stage of the business (survival, then growth).
• Boom or recession.
• Competitors, technology or law.
• New owners or managers.
• Stakeholder pressure.

From objective to target to budget

Oakdrift’s sales revenue is 250,000 and the objective is a 10% rise. Target: 250,000 × 1.10 = 275,000. A promotion budget at 3% of target: 0.03 × 275,000 = 8,250.

Step	Output
Objective	Raise sales revenue by 10%
Target	275,000 for the year, split by month or department
Budget	Money allocated to reach it, such as 8,250 for promotion

SMART checklist

Letter	Question to ask
Specific	Is it clear what is to be achieved?
Measurable	Is there a figure?
Achievable	Do we have the resources?
Realistic	Is it sensible in this market?
Time-limited	Is there a deadline?

Communication and the workforce

• Clear objectives give direction and can raise motivation.
• Involving staff in setting targets helps commitment.
• Poor communication or unrealistic targets cause confusion, stress and resentment.
• Staff may resist change they do not understand.

Ethics and objectives

• Can rule out some objectives, such as profit from unsafe products.
• Can shape activities, such as fair treatment of suppliers.
• May raise costs in the short term; may build reputation and loyalty.

1.5 Stakeholders

A stakeholder is an individual or group with an interest in a business.

Internal	External
Owners and shareholders, managers, employees	Customers, suppliers, lenders, government, local community, pressure groups

Roles, rights and responsibilities (short form)

Stakeholder	Right	Responsibility
Employees	Safe conditions, agreed pay	Work to the contract
Shareholders	Vote, dividends	Accept risk
Suppliers	Payment on agreed terms	Deliver agreed quality on time
Customers	Safe, accurately described goods	Pay the agreed price
Government	Tax owed, law obeyed	Apply law fairly
Community	Reasonable environment	Support lawful activity

Influence, accountability and conflict

• Influence depends on the power to affect the outcome, not on the size of the group.
• Impact and reaction: who gains, who loses, and what can they do?
• Stakeholder aims can shape decisions before they are made, for example by refusing credit.
• Accountability means explaining and justifying actions to those affected; it protects trust.
• Conflict arises from different aims: pay against profit, price against margin, growth against local environment.
• Changing objectives (for example from growth to profit) shifts who gains and who loses.

CSR and the triple bottom line: both sides

Possible benefits	Possible costs
Stronger reputation and customer loyalty	Higher costs, such as safer materials
Easier recruitment and retention of staff	Lower short-term profit
Fewer disputes with the community or government	Benefits may be slow and hard to measure
Reporting on all three bottom lines shows wider performance	Risk of being accused of empty claims if actions do not match words

Judgement tip: say which side is stronger for this business and why. A firm selling to customers who care about the environment gains more from CSR than a firm selling a low-price basic product.

Worked reminder: reaction and conflict

Situation: Hollowmere Bakery plans to replace counter staff with self-service tills to hit a cost-cutting objective.

Stakeholder	Impact	Likely reaction
Employees	Fewer shifts or job loss	Resistance, lower morale, union involvement if one exists
Shareholders	Lower costs, higher profit	Support
Customers	Faster service for some, less personal service for others	Mixed; some may shop elsewhere
Local community	Fewer local jobs	Complaints, less goodwill

Conflict: shareholders gain what employees lose. The judgement depends on the business. If customers value personal service, the cost saving could be offset by lost sales.

Evaluate and justify questions

1. State the decision or claim.
2. Give a reason for, applied to the business.
3. Give a reason against, applied to the business.
4. Reach a judgement and say what it depends on, such as time period, size of the business or how strongly a stakeholder can react.

Objectives and stakeholders together

• Each objective favours some stakeholders: growth may suit managers and employees seeking promotion; high profit suits shareholders; low prices suit customers.
• When an objective changes, re-ask who gains, who loses and who can respond.
• Link each point to the business in the case: name the product, the customers and the numbers given, so that the answer could not be pasted into another case.
• Check whether the stakeholder is internal or external before judging how much influence it has, because internal groups often act through the business itself and external groups through pressure or choice.
• Accountability is the link: a business that explains why it changed its objective keeps trust even among groups who lose out.

Must-know distinctions

• Mission statement vs objective: a mission has no number or deadline; an objective does.
• Aim vs objective: an aim is broad; an objective is measurable.
• Strategy vs tactics: strategy is long term; tactics are short-term actions.
• Stakeholder vs shareholder: a shareholder is one kind of stakeholder.
• Target vs budget: a target is a goal figure; a budget is the money plan.
• Internal vs external: inside the business or outside it.

Quick self-test

1. Name the three parts of the triple bottom line.
2. State one typical objective of a public-sector organisation.
3. Put these in order from broadest to narrowest: tactics, mission statement, objective, strategy.
4. A business has sales revenue of 320,000 and wants a 5% rise. What is the target?
5. Which SMART element is missing from “Improve customer service”?
6. Give one reason why objectives change over time.
7. Name one internal and one external stakeholder.
8. State one responsibility of a supplier.
9. Why might a small local group still have high influence?
10. Define accountability in a business context.

Answers

1. Economic (financial), social and environmental.
2. For example, providing a service to all citizens, or staying within budget.
3. Mission statement, objective, strategy, tactics (aims sit between the mission statement and the objective).
4. 320,000 × 1.05 = 336,000.
5. Several: it is not measurable and has no time limit.
6. For example, a recession, new competitors or a new owner.
7. Internal: employees. External: customers (other answers are fine).
8. Deliver goods of the agreed quality on time.
9. It may be able to generate publicity or block a plan, even though it is small.
10. Explaining and justifying actions to those affected by them.

Where marks are usually lost

• Writing “stakeholders” when the question asks about one named group.
• Listing groups without explaining the impact and reaction.
• Calling a mission statement an objective.
• Giving a SMART objective with no figure or no date.
• Treating profit as the only objective of every business.
• Saying all conflicts can be solved, with no reasoning.
• Forgetting to apply the answer to the business in the case.
• Making a judgement without comparing both sides.

Frequently asked questions

What is the triple bottom line? The triple bottom line means a business sets economic (financial), social and environmental objectives together, rather than judging itself on profit alone.

What are the stages of decision-making in Cambridge 9609 Business? A standard form is: set objectives, gather information, identify options, choose an option, implement, and review against the objectives. Objectives start the process and act as the benchmark at review.

What is the difference between strategy and tactics? A strategy is the long-term plan to reach an objective. Tactics are the short-term actions that carry the strategy out.

Why can a small stakeholder group have a lot of influence? Influence depends on the power to affect the outcome, not on the size of the group. A small local group may be able to generate publicity or block a plan.

Official syllabus

Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028, published by Cambridge University Press & Assessment (Cambridge Assessment International Education), sections 1.4 and 1.5.