WEEK 1 TASK 2

1. How important are non-financial objectives to UK listed companies? (Hint: Review

some company websites and see if you can find their main objectives)

Answer:

In economic theory, the top objectives of a business, is to maximize the profits of the
company and to increase the value of the shareholders. Each company tried to make a
long term plans and strategies to achieve these particular goals. The indications of
these plans and strategies, lets say, if investing in these company, shareholders are
taking a risk by investing their money and, as a result, the company should exchanges
their effort in term of returns from their investment.

For example: Macy’s Inc, a giant U.S. retailer, integrates its financial objectives in the
company’s vision and philosophy. The company philosophy is to run a customer-
centered business. By so doing, it expands its market share, which in turn is good for
profit maximization. The end result is that the company’s shareholders become
wealthier. Making shareholders wealthier is one of the company’s objectives.

Non-financial objectives are associated with few factors, such as, their workers
(management and employees) and social responsible, provision of certain level of
service, obligations toward customers and suppliers, and lastly, the growth,
diversification and the leadership style in term of research and development.

As a business owner, you want to grow your company and increase sales. Although
financial goals are essential, there are many other factors that affect business
performance. Non-financial objectives, such as those revolving around customer loyalty,
employee welfare, labor productivity and production volume also matter. These factors
have a direct impact on your company's performance and revenue

Setting of business goals and objectives is integral to the success of any business. Non-
financial company objectives also play an important role in improving the overall
performance and turnover. These goals help even out a business's strengths in areas
like production quality, customer and employee satisfaction, personal satisfaction.

Employee Performance Goals

Your employees are your greatest asset. Without them, you wouldn't be able to run your
business smoothly, meet customers' needs and, ultimately, generate sales. Make sure
you have a system in place to measure employee performance and productivity. For
example, you can monitor their work efficiency, quality and quantity. Good employees
neither waste time nor effort. They make sure to meet deadlines without sacrificing work
quality. They also develop creative solutions to mitigate risks, cut costs and improve
customer satisfaction.

Happy employees will do their best to help your business grow. They'll go back and
forth to ensure customer satisfaction, meet deadlines and live up to your expectations.
Companies with engaged employees are 17 percent more productive and have 41
percent lower absenteeism rates than those with disengaged teams. They also report
up to 20 percent more sales and 21 percent greater profitability.

Customer-Oriented Goals

Seven in 10 UK are willing to spend up to 17 percent more with a brand that provides
excellent service, according to a survey conducted. Millennials who receive great
service will share their experience with 17 people on average. Poor customer service,
on the other hand, is reason enough for 33 percent of buyers to switch brands.

Reference

UKEssays (November 2018). Facebook Business Structure Analysis. [Online] Available

at: https://www.ukessays.com/essays/marketing/financial-and-non-financial-objectives-
of-the-company-marketing-essay.php?vref=1 (Accessed: 17 September 2020).