Suffice it to state here that business lies economic as well as social objectives. Like any other institution business has several rather than a single objective. Development of operating plans for the pursuit of the chosen strategy and policies. (i) Creation of Customers – Creation of customers or demand is essential in order to earn profits. It comprises all efforts made in perfecting the product, minimising the costs and maximizing benefits to customers. Selecting the best opportunity or opportunities from an array of them, this can cope with the capacity of the company. Generating employment opportunities – It is essential for a business to generate employment opportunities so as to raise standard of living of people and foster economic development of the country. (ii) Reducing disparities among rich and poor nations by expanding its operations. 3. A businessman can earn profits only when there are enough customers to buy and pay for his goods and services. v. Generating new employment opportunities through growth and expansion. Before publishing your Article on this site, please read the following pages: 1. Social objective deals with fulfilling obligations towards the society. Business means conducting activities such as – sale, purchase and manufacturing etc for profit and growth. A perfect example is the current exchange rate of 1 American dollar (USD) and 1 Bangladeshi Taka (BDT). Improving standard of living by providing quality goods and services. 5. The various other important objectives of business are described below: i. Objectives. It is the obligation of business to provide healthy and safe work environment for employees. This requires a careful approach to avoid escalating costs. iii. These objectives are classified into two categories; namely Micro Level and Macro Level. The primary objective of business therefore should be satisfaction of human wants through supply of quality goods at reasonable prices. Carrying the activities of research and development for innovation in business. Policy can either is formal or … Business enterprises have a number of objectives like economic, human, organic and social. In order to pass through these stages in time and with strength, a business unit uses several methods, e.g., ploughing back a part of its profits, attaining optimum size to avail of the economics of scale, etc. For instance, Technology, Finance, Communication, etc. As an organic entity, a business enterprise has its own stages of infancy, childhood, adolescence, adulthood and maturity. All business enterprises require physical resources (like plant, machinery, etc.) A business enterprise must aim to increase its market standing by offering good quality products at reasonable prices and serving them better than competitors. The main economic objectives of business are as follows: A business enterprise is established for earning some income. vi. Profits provide a means of livelihood for the entrepreneur and a reward for bearing the risk. Business objectives are something, which a business organisation wants to achieve or accomplish over a specified period of time. iii. Viewed in this light, profit plays a vital role as a measure of efficiency, and must be watched constantly. (vi) Manager Performance and Development: All business enterprises need managers to conduct and coordinate business activity. Economic Objectives 2. (iv) Protection of Environment – Business enterprise should take all reasonable steps to check and protect environment. It has also to retain old customers by providing better services to them. Periodic re-evaluation of positions in the light of developments within the organization and its environment. A wholly-owned subsidiary: This type of FDI can be established in foreign markets as a new operation or an acquired firm. vi. PreserveArticles.com: Preserving Your Articles for Eternity. With the purpose and objectives clearly spelled out, the scope of the project can be defined. Shaping high-level, long-range corporate objectives and strategic that will be matched, to both company capacities and to external realities in a world marked by rapid technological, economical, social and political change. Small scale firms can be developed as ancillaries, which provide inputs to large scale industries. the shareholders must get safety for their investments in business enterprise as well as adequate, regular and assured return on investment must be given to them. They develop new technology, introduce new designs and new tools and processes to minimise costs and to satisfy ever increasing wants of customers. In order to create customers business has to explore new markets and attract more customers. Eventually, depending on what your business needs, you can source for it internationally. Providing facilities for the spread of literacy, education, training etc. In the absence of profit a business may cease to exist over period of time. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. So a company must earn profit if it is to continue to exist. Because of this, a business enterprise can fulfill its twin mission in the environment in. But profit-making is not the sole or only objectives of a business. The objectives of business must be laid down keeping in view prevailing environment. Objectives of any business enterprise have a great impact on the organisation and its working. (c) Production according to national priorities, (d) Self-sufficiency and export development, and, Business, Management, Meaning of Business. Copyright. It is, therefore, the duty of employers to provide hygienic working and living conditions for workers. The business objectives are multiple. Customer is the king of market. Therefore, objectives of business should be defined keeping in view its prevailing environment and its needs for survival and growth. For example, the objective of a mobile company can be to increase the mobile users by 10% in 2 years. All business objectives need to be properly balanced, coordinated and integrated. Social objectives refer to the objectives, which are desired to be achieved for the benefit of the society. Workers’ participation in management will usher in industrial democracy. Creating customers and capturing more markets for the products of the business. Various objectives of business may be classified into four broad categories as follows: 1. In a country like India unemployment has become a serious problem and the Government is unable to offer jobs to all. Every human activity has some objective or objectives, and business, as one of the important human activities, must have objectives. The business is an economic institution operating in a socio-economic system. Conclusively, branching out to different countries, while trying new products are favorable to every business. But profit-making is not the sole or only objectives of a business. Innovation is not confined to the invention of a new machine. Profits enable a businessman to stay in business by maintaining intact the wealth producing capacity of its resources. They arise from the businessman’s efforts to satisfy the needs and wants of customers. iii. National objectives of business are as follows: Business should use the nation’s resources in the best possible manner. Spend some time here, and be thorough. Manager performance and development – The success of a business primarily depends upon the competence of its human resource. The business objectives can be studied under the following heads, The sole trader business is set up for the following objectives, Controlling in Management # Meaning, Definition, Types, Process, Steps and Techniques. All human activities relating to the production of goods or services for satisfying human wants are called ‘Business’. In this competitive world, management of a business must set’ Multiple Objectives’ for its long-term survival and growth. Essentially, finding a location where the cost of production is low helps you save money and earn more. We normally setup business to achieve profits for its owner or shareholders. Thus, expanding and testing the international waters is a great way to improve your business. 3. Primarily, the difference in currency exchange can determine if you stand to gain or lose more from your business transaction. Share Your PPT File. Chapter 1, "Developing a Business Justification for Migrating to Windows 2000," enumerates many of the differences and advantages that Windows 2000 holds over Windows NT 4.0. Major differences between project scope and objectives. i. SECURITY ANALYSIS AND INVESTMENT MANAGEMENT, GGSIPU(BBA) BUSINESS POLICY & STRATEGY – 6TH SEMESTER – STUDY MBA & BBA NOTES. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. International business defined as global trade of goods/services or investment. ii. In this competitive world, innovations are very important for a business enterprise to flourish. Under macro level, business has objectives like improving the import substitution, promoting more export developing small scale business units, industries as well as entering into area of production.