Business Objectives in Private and Public Sectors

Business Objectives in Private Sector

Profit Maximisation: One of the primary objectives in the private sector. Businesses aim to earn the highest possible profits by increasing revenues and reducing costs.
Market share Growth: Businesses target growing their percentage of the total market sales. More market share often equates to more influence within the industry.
Survival: In competitive environments, businesses may simply aim to stay operational. This is especially true for new start-ups and businesses facing tough market conditions.
Maximising Sales: Some businesses aim to maximise the number of units sold rather than focusing solely on profits. This could be to establish a strong customer base or to achieve economies of scale.
Maximising Shareholder Value: Privately-owned firms aim to maximise the returns for their shareholders. This can be achieved through increasing share price and distributing dividends.

Public Service Provision: The underlying purpose of public sector entities is to provide services to the public like healthcare, education, defence, etc.
Efficiency: Public sector bodies often aim to use resources effectively and avoid waste. They need to deliver public services efficiently due to budget constraints and taxpayer scrutiny.
Equity: Public sector organisations aim to deliver services fairly to all members of society. They seek to minimise the gap between different socio-economic groups.
Sustainability: Public sector objectives often include sustainability considerations. There is an increasing focus on delivering services in eco-friendly ways.
Stability and Security: In contrast to the fluctuating nature of private sector objectives, public sector entities aim for stability and security, ensuring continuous service provision regardless of economic cycles.