Business: Objectives

Business: Objectives

Profit Maximisation

  • Profit maximisation is often the primary objective of businesses.
  • It involves earning the highest possible profit by increasing revenue or reducing costs.
  • Businesses would use this profit for reinvestment, satisfying shareholders, or providing a buffer against future financial difficulties.

Business Growth

  • Business growth can be an important objective for many businesses.
  • A business might aim to expand its market share, increase sales, or enter new markets.
  • Growth can be organic (e.g., increased production) or inorganic (e.g., acquisitions or mergers).

Survival

  • The survival of the business can be a key objective, especially for startups and smaller businesses.
  • This might involve generating enough revenue to cover costs, dealing with competition, or navigating difficult economic times.

Corporate Social Responsibility (CSR)

  • CSR refers to a business’s commitment to ethical behaviour and contributing to the welfare of society.
  • This could include minimising environmental impact, treating employees fairly, and supporting local communities.

Customer Satisfaction

  • Customer satisfaction can be a central objective as satisfied customers are more likely to make repeat purchases and recommend the products or services to others.
  • This may involve providing high-quality products or services, excellent customer service, or offering good value for money.

Market Share

  • A business’s market share is the proportion of the total sales in an industry that is achieved by that business.
  • Increasing market share is often a key objective as it helps a company dominate its market.

Employee Welfare

  • Prioritising employee welfare can help retain skilled workers and improve productivity by promoting job satisfaction and morale.
  • This could involve offering competitive benefits, promoting a healthy work-life balance, and providing opportunities for career development.

It’s crucial to remember that these business objectives are not mutually exclusive. Most businesses will have multiple objectives, and these can often complement each other. For example, CSR initiatives can bolster a company’s reputation, leading to increased sales and profit.