9 Truths About Life That Quietly Break You and Then Change You

OBJECTIVES OF BUSINESS

Every business enterprise has certain objectives which regulate and generate its activities. Objectives are needed in every area where performance and results directly affect survival and prosperity of a business. Objectives of business may be classified into four broad categories as follows:is conducted for the Economic Objectives, earning Profit the purpose of Social Objectives.Business of any activity lack National Objectives,Human objective.

ECONOMIC OBJECTIVES

Business is basically an economic activity. Therefore, its primary objectives are economic in nature. The main economic objectives of business are as follows:-

EARNING PROFIT:

 Profit is the basis of business. A business enterprise is established for earning some income. It is the hope of earning profits that inspires people to start business. Just as a person cannot live without food, a business firm cannot survive without profit. Profits ensure continuous flow of capital for the modernization and extension of business operations in future. Profit also serves as the barometer of stability, efficiency and progress of a business.

EXPLORING NEW MARKETS: 

A good growing business needs new markets, so it is the objective of a business to explore new markets. Exploration of new market increases the sales hence increases the profit of business which is the basic objective of business.

CREATION OF CUSTOMERS: 

A business unit cannot survive unless there are customers to buy the products and services. A businessman can earn profits only when he/she provides quality goods and services at a reasonable price. For this it needs to attract more customers for its existing as well as new products. This is achieved with the help of various marketing activities.

USE OF NEW TECHNOLOGY:

 The business community must introduce new technology for the purpose to increase the quality of goods at low rates. In these days of competition a business can be successful only when it adopts new technology, introduce new designs and new tools and processes to minimize costs and increase production.

BUSINESS STABILITY: 

For business stability a businessman work continually and explore new ways. If a business cannot maintain and increase its profits it cannot achieve stability. A stable business can only grow and helpful for the development of nation.

ECONOMICAL PRODUCTION:

 To maximize profits every business-tries to produce goods and services at a minimum possible cost. By this effort business can provide cheaper and competitive price. The economical production is one of the basic objectives of a growing business, and achieve stability.

ECONOMIC DEVELOPMENT:

 Economic development of country is the main focus of all successful and profitable business. Favourable balance of payment and balance of trade can be met with the help of business Increased investment and employment opportunities lead to increase in per capital income and real wages of workforce.

SOCIAL OBJECTIVES

Business does not exist in a vacuum. It is a part of society. It cannot survive and grow without the support of society. Business must therefore fulfill social objectives in addition to earning profits. These may be the following:

QUALITY OUTPUT:

Every good business wants to produce better quality goods in the market. A brand name is developed; it becomes the sign of quality in the market.

REASONABLE PRICES:

 It is a social objective of a good business to provide goods and services at reasonable prices. Reasonable prices increase the sales of a business and enhance the profit of a business.

FAIR WAGES:

 Fair wages to its employees is an important socialservice. A fair return for the services of employees able them to provide good education and health facilities to next generation. So the fair wages is a good social objective of every business./

SAFETY MEASURES:

 It is the duty of every business that it provides a conducive and safe working environment. In every business premises there should be appropriate safety measures. Safety measures also help to control the pollution in the environment.

FRINGE BENEFITS:

 A business provides some other benefits to its employees than the wages. It includes overtime, bonus, housing and health facilities. Many businesses provide, schools, canteen and transport facilities also. These facilities improve the morale of employees and a good service to the society.

APPRENTICE TRAINING:

 This training is necessary for fresh graduates to have a good practical training, It is a good social service. It increases the skilled labor force in the country.

NATIONAL OBJECTIVES

Being an important part of the country/every business must have the objective of fulfilling national goals and aspirations. Business activitie should be conducted keeping following goals of the country in mind.

INCREASE IN EMPLOYMENT:

 All types of business needs the services of people. So another objective of business is to provide job opportunities not only to owner as well as to so many other persons.) Business creates new employment opportunities with the growth and development of business. This helps to increase the employment level and per capital income in the country.

BETTER LIVING STANDARD:

 The business provides job opportunities to people. As the increased in job opportunities, people would be able to spend more on basic necessities, hence, improve the living standard.) It is a national objective of a business to provide quality goods and services at reasonable prices. This/helps to improve living-standard

FOLLOW LAWS:

 It is the national objective of every business to obey law and regulations of county. This improves the law and order in the country and improved-law-and-order_conditions helps to grow and develop the business. It creates-goods-business environment and investment-conditions.

STABILITY IN PRICES:

 A good business tries to stabilize the prices and business conditions on a country. Stability in prices improves the business environment in the country and also the investment environment in a country. Stable prices increase the sales-of-the product and profit. This increases the national-income.

USE OF IDLE RESOURCES: 

It is a national objective of a business that the idle resources of a country should be used and participate to increase the national inc me. With the use of indigenous idle. resources, burden on imports would be decrease and also have favourable effect on the balance of payments.

BALANCE OF PAYMENT: 

It is national objective that the goods which are imported should be produced in the country. This policy improves the balance of payment and balance of trade also. It also increases the national income and/helpful to create employment opportunities.

DEVELOPMENT OF SMALL SCALE INDUSTRIES: 

Big business firms are expected to encourage growth of small scale industries which are necessary for generating employment. Small scale/ firms can be developed to provide inputs to large scale industries

DEVELOPMENT OF BACKWARD AREAS: 

Business is expected to give preference to the industrialization of backward regions of the country.) Balanced regional development is necessary for peace and progress-in the country ft will also help to raise standard of living in backward areas. Government should offers special incentives to the businessmen who set up factories in notified backward areas.

HUMAN OBJECTIVES

Business activity can be conducted only through the human beings working as individuals or groups in organizations. Human objectives of business require that a workable balance should be maintain among the claims of various interested groups. Some of the important human objectives are:

WELFARE OF EMPLOYEES:

 The employees should be looked upon as human beings. They help in increasing the profitability and should be given a due share in profits in form of bonus, increased allowances or spending money on their welfare. The best prerequisite for getting the best out of people is providing a fair wages and other incentives. Business should take come of its employees and employees wold take care of its clients.

SATISFACTION OF CONSUMERS: 

The business is meant for consumers and their satisfaction should be the main objectives of business. So goods should be produced according to the needs tastes and purchasing power of the consumers.

They should be provided with quality goods at reasonable prices.

SATISFACTION OF SHAREHOLDERS:

 The management should give reasonable return on the money invested by the shareholders. At the

same time, the business should grow so that there is capital appreciation also. The shareholder should also feel that the management does not misuse their money.

DEVELOPMENT OF HUMAN RESOURCES: 

Employees as human beings always want to grow. Their growth requires proper training as well as development. Business can prosper if the people employed can improve their skills and develop their abilities and competencies over time. Thus, it is important that business should arrange training and

development programmes for its employees.

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