Business Objectives
An objective is a target to work towards or an aim for things coming up in the future. All businesses should have objectives.
Benefits:
An objective is a target to work towards or an aim for things coming up in the future. All businesses should have objectives.
Benefits:
- It gives workers and managers a clear target to work.
- It helps the whole business towards the same goal.
- Compare how the business has performed.
What objectives do businesses set?
The most common objectives for businesses in the private sector are to achieve:
The most common objectives for businesses in the private sector are to achieve:
- business survival
- profit
- returns to shareholders
- growth of business
- market share
- service to the community
- To make jobs more secure
- To increase the salaries and status
- To open up new possibilities spread the risks
- To obtain a higher market share
- To obtain cost advantages
Profit is total income of a company.
- It needs to:
- It needs to:
- Pay a return
- Provide finance
Market share is the percent of total market sales achieved by one business.
-Increase market share gives:
-Increase market share gives:
- The company will be more popular.
- Bigger and become a more powerful company.
Social Enterprise are businesses that trade to tackle social problems, improve community or society. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community.
- 3 objectives for social enterprise:
- 3 objectives for social enterprise:
- Protect the environment.
- The financial come from the profit that the company makes.
- Help the society and provide jobs.
Stakeholder people that they invested or buy company's products and helping the company to make it works well and grows more.
People that are involved:
People that are involved:
- Owners
- Consumers
- Workers
- Governments
- Managers
- Banks
- The whole community
Why business objective could change
- A business set up recently has survived for three years and the owner now aims to work towards higher profit .
- A business has achieved higher market share and now has the objective of earning higher returns for shareholders
- A profit - making business operates in a country facing a serious economic recession so now has the short term objective of survival .
Objectives of public - sector business
- Financial : Meet profit targets set by government sometimes the profit is reinvested back in the business and on other occasion it is handed over to the government as the 'owner' of the organization
- Service : Provide a service to the public and meet quality target set by government
- Social : Protect employment in certain areas- especially poor region with few other business employer
- Financial : Meet profit targets set by government sometimes the profit is reinvested back in the business and on other occasion it is handed over to the government as the 'owner' of the organization
- Service : Provide a service to the public and meet quality target set by government
- Social : Protect employment in certain areas- especially poor region with few other business employer
