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Additional info for CIMA Official Exam Practice Kit Enterprise Strategy, Fifth Edition
Local authority. The local authority funds the school and therefore sets the resources available. In addition, many of the services offered by the school may have to be agreed with the authority. – Employers. The employers of the children after they leave school are indirect customers as they are looking for a certain level of education in the 26 Exam Practice Kit: Enterprise Strategy different subject areas. A failure to meet these expectations would lead to dissatisfaction amongst the other stakeholder groups as school leavers would be unable to obtain jobs.
The board of directors will also need to be aware of the corporate governance issues that it will now face. The stock market of C will almost certainly have a code of practice which must be followed for listed companies. Now that CTC is owned by shareholders it will be necessary for it to meet objectives addressing the values of those shareholders whilst still complying with the regulations imposed by the government. Since the telecommunications industry in C has become deregulated it is possible that foreign companies could enter the market and offer a rival service.
This involves some difficult judgements in assessing the wants (rather than the needs) of the different client groups, and in identifying the factors to be considered, but it is likely to be more useful to the school, reflecting as it does the complex nature of the stakeholder compromises required in the public sector. Question 5 Genetic code A pharmaceutical company will have the maximisation of shareholder wealth as its primary objective, but will also have subsidiary objectives relating to other stakeholders.