What is Objectives of Business
The business objectives means the purpose for which business is established. The main objective of a business is to making profit and avoids loss.
According to Urwick “Earning of Profit is not the sole objective of a business any more than eating is the objective of living”.
The business objectives can be classified in to three categories:
1. Economic Objectives.
2. Social Objectives.
3. Human Objectives.
These are discussed below.
1.Economic Objectives of business:
Business as we know it is an economic activity, the economic activities may include market creation profit earning, innovation etc
a. Market Creation:
Every business tries to create customer for its products and services. The more the customer are created the wider will be the market for the goods and larger the profit.
b. Profit Earning:
Every business tries to make more profit on its product and services. If the product is unique it catches the customer’s attention, and business earns more profit.
Today’s world is fast and rapid changing of technologies makes every business alert, in this sense cope with changing is important, if business want to stay in market so Technological improvement is important with time in every business. The creation of new product, new design and application of new techniques of production grow the business.
The best use of scare resources is important i.e. man, machines and materials.
2. Social Objectives of Business:
The social objective is now a day more important for every business, the social objective includes standard qualities of product, anti-social practices, employment to peoples, government cooperation, pollution avoidance, welfare of employees.
The following social objectives explain below;
The business should produce quality product. The business which produce inferior product cannot prosper in the market for long time.
2.Anti-Social Practice should avoid:
Anti-social practices should be avoided in business such as smuggling, black marketing, hoarding etc
Business must provide employment to the people it helps in increasing the standard of living of the members of the society.
4.Avoidance of Pollution:
The avoidance of pollution connected with industrialization should also be a social objective of a business.
Human Objectives of Business:
Human factor is important element in business it cannot be overlooked. The activity of business is carried by an entrepreneur through employees and for the customers.
The following human objectives are;
- The salary of the employee and bonus should be fair.
- Good environment given to the employees to develop new skills.
- Job satisfaction to the employee.