What are the Objectives of Business?

Major Business
Objectives Explained
While setting up a new business, you have a few goals in mind like making an impact to the
society, making X amount of profits, employing 100+ people, getting the business listed on the
stock exchanges, etc. Some business owners may have better laid out plans for their enterprises
then others.

In any case, a business needs to have a few objectives of its own. What are the ideal objectives
that a business has? Or should have?

The Major Objectives of Business

Objectives are what provide a clear target and help as the driving forces for achieving your
business goals. If you want your enterprise to grow & prosper, you need to have clearly defined
objectives for driving your business ahead.

Objectives are defined as the purpose for which a business has been started. A business can
have several objectives and broadly classified into different subcategories as follows-

1. Economic Objectives
2. Social Objectives
3. National Objectives

Economic Objectives

Economic Business objectives are perhaps one of the major objectives for launching a business.
A business is normally started with the purpose of earning a profit and working towards that goal.
These can be further classified under the following subsections.

1) Earning Profit

Undoubtedly, this is the major objective of business and remains the life force of any business.
Profit plays a major role in survival, growth and further expansion of your business. In addition to
helping business owners and the employees make a living, the profits can also be helpful in
growing the business further by reinvesting them back in the business.

2) Gaining Customers

Customers are crucial for any business without whom the business cannot survive. They are the
ones who help you earn a profit. Gaining customers to your business is an important exercise,
and it can be achieved with a focus on the right form of marketing. The marketing in itself has a
few other objectives which would help you achieve your business goals with ease.

4) Increasing Productivity
Productivity is a scale to measure the efficiency of the business activity. It is usually the last objective
but just as important because productivity is measured by the output given by the activities. It is the
end result of any business activity. Each business must go for more prominent productivity – to
guarantee its survival and development. This goal can be accomplished by decreasing wastages
and making proficient utilization of machines and supplies, HR, cash etc.

3) Optimum Use of Resources

A business needs a host of resources to work with. The minimum requirements for business
include raw material, machines, workforce, and other requirements. Your prime objective as a
business owner should be to make optimum use of all the resources available to you. Any
business has limited resources, and the best strategy should be to make use of these resources
to the maximum possible extent.

Make sure you indulge in as much innovation as possible to bring in an advanced functionality in
your business. Adapting better methods of production and taking in the latest technology can be
one of the best means of achieving this objective.

Social Objectives

A business is set up in a society. You, as a business owner, have used the resources provided
by society. Social objectives are defined as those objectives of a business developer for the sake
of society. Every business should aim at giving something in return to society.

No business should have an option of troubling society. There are a few business objectives from
the social perspective, a few of which can be summarized below.

1) Good Quality Products and Services

Now that your business rests on the resources provided by the society at large, it, in turn, expects
you to provide a better quality of products and services. A good business objective should be to
produce quality goods.

You should avoid inferior product quality as it can cause serious concerns to the health of the
customers. Even the pricing needs to be according to the quality of the service being provided.
Another important objective that a business should follow religiously is to provide timely delivery
of products and services.

2) Contribution to Society

One of the major objectives of business should be the upliftment of society at large and working
towards the welfare of society. How about running or assisting schools and colleges for a better
level of education? Some business houses plan vocational training at schools and colleges. This
can also be helpful in getting your workforce requirements fulfilled from this training.
Another option you can check out can be establishing the hospitals or aiding them in providing
better medical facilities. Business houses can also take part in setting up recreational facilities
like children’s parks and sporting championships.

National Level Objectives

A business thrives based on the support provided by the nation and its policies. As an integral
part of the nation, a business should always focus on fulfilling the national objectives and goals.
Make sure your business has an objective of reaching up to the expectations of the government
and the national institutions.

Some of the national Business objectives can be follows.

1) Creation of Employment Opportunities

It should be one of the prime national objectives that a business needs to focus on. Setting
up new manufacturing plants, setting up a nationwide marketing network of retailers and
distributors, and expanding the business to multiple locations are some of the ways you will be
able to achieve this goal. Make sure your business creates direct or indirect employment
opportunities for the national youth.

2) Social Justice Objective

A business is expected to serve the people of the nation without any sort of prejudices and social
discrimination. The opportunities and welfare schemes provided to the employees should remain
the same irrespective of their cast, creed, religion, gender, and rank. Your business is also
expected to pay attention to the economically and socially backward sections of the society as
per the national regulations.

3) Contribution to the betterment of society

Another important objective you need to pay heed to is to pay your taxes and other dues honestly.
The aim should be to increase the revenue of the government so that the nation will progress
along with your business.

4) Focus on exports and reducing imports

Enhanced focus on the exports will ensure that the nation will grow self-reliant and achieve the
best results. As one of the reliable and capable businesses, your objective should focus on the
reduction in the imports and if possible, work towards enhancing the exports. Exports will help
you achieve the task of improving foreign exchange reserves.

5) Humanity oriented Objectives

One of the best objectives that you would focus as a business would be to the wellbeing of its
employees. This includes economic wellbeing of the employees along with the focus on the social
or psychological wellbeing of the employees.