Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. We do admit that profit is a driving force in undertaking any business activity but it is not the sole objective of any business. In the words of Urwick “earning of profit cannot be objective of a business any more than eating is the objective of living” . A business which is hunting after profits and ignores other objectives will not be doing service to the community. We here classify the objectives of business under three heads and then examine them briefly (1) Economic objectives (2) Social objectives (3) Human objectives.
I. Economic Objectives:
Business, as we know. is primarily an economic activity. The major economic objectives to be achieved by business are: (1) earning of profit (2) creation of market and innovabon.
(i) Profit earning
The primary objective of business is to produce and sell goods for profit, of course, through the satisfaction of human wants. A business which does not earn profit cannot stay in the market for a longer period. The income of enterprise, therefore, must exceed expenditure over a period of time. Profit is necessary for the enterprise to. insure its own survival, growth and expansion. In the Words of Petter F Rucker NThe problem of any business is not the maximization of profitbut the achievement of sufficient profit to cover the fisk of economic activities and thus to avoid /osses”. It i clear from the above definition that a business enterprise should work for reasonable profit which should cover its own future risk. If the profit is made by over-charging customers, indulging in malpractices such as hoarding, blackmarketing, smuggling, etc, it will be against the ethics of business. It will be regarded robbery and not a business activity.
(ii) Creating Markets
Every business tries to create customers for its products and services. The more the customers are treated, the wider will be the market for the goods and larger the profit.
(iii) Technological Improvements
The business, if it is to stay in, the market, must offset stagnation by using efficient methods of production. The creation of new products, new designs and application of new techniques of production contributes to growth, change and expansion in the economy.
II. Social Objectives:
The social objectives of business are gaining more and more recognition with each passing year. The main social objectives of business are as follows:-
(i) Supply of standard quality of goods
One of the social responsibilities of business is to produce goods of standard quality. If the enterprise is producinginferior, substandard and adulterated goods, it will be doing disservice to the society.
(ii) Avoidance of anti-social practices
It is not fair on the part of a business to indulge in anti-social practices such as hoarding, black marketing, smuggling, overcharginq etc., to earn profit. A reasonable profit on a legitimate business is regarded a healthy sign and considered hi/al from Islamic point of view also.
(iii) Provision of more employment.
Business provides employment to the people. It thus helps in increasing the standard of living of the members of the society.
(iv) Cooperation with the government
The business community should adopt a positive approach towards the policies of the government of the country. They should pay all taxes and dues in time to the gqvernment. All business activity should be carried within the legal frame work of the country.
(v) Use of national resources
The business should use the national resources in the best interest of the country. Wastage should be reduced to the maximum. The motto should be more and more goods for more and more people at lower and lower prices.
Ill. Human Objectives:
The business’activity is carried on by the people (entrepreneurs) through the people (employees) and for the people (customers). Human factor is thus an important element in business. A business which overlooks the human factor cannot prosper and ultimately suffers losses. The human objectives of business are that (1) the employees working in a business should be fairly rewarded (2) A healthy climate is created by providing opportunities to the employers for deve new skills and abilities (3) The employees should have say in the affairs which directiy affect them. (4) thinking of modern business must go well beyond material benefits of its employees. It must reduce unpleasantness of work and plan forjob satisfaction to the workths.
IV. National Objectives
Every business whether operating on small or large scale must have an obligation towards nation also. It should help in achieving national goals such as promoting social justice, increasing valued added goods for exports, finding out better and cheaper substitutes for imports and helping in increasing exports for building the foreign exchange reserves to meet the import bills
What does it take to properly franchise your business? How much should you budget when planning out a budget? More >>
Text marketing is a new strategy used by businesses of all sizes. It has been proven to be a more valuable, and more effective, form of marketing than any other mobile marketing strategy. More >>
Your wedding day is coming closer and if there is one thing you wish for most, it is appear best on your unique day. More >>
Microsoft is working on an update to Windows 8 and RT and will be releasing a preview version of it in June More >>
It has become so much easier today than it was fifty years ago running an online business. More >>
Barter System - Barter System is that system in which goods are exchanged for goods - Barter System More >>
Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. More >>
Functions of Money - Functions of Money as a Medium of Exchange, Measure of Value, Deferred Payment, Store of Value - Functions of Money More >>
The importance of business is that it provides products or services to customers. More >>
The partners of a firm are broadly divided into three main categories. General Partners, Special Partners and Other Partners. More >>