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Business & its objectives

Business       The organized efforts of enterprises to supply consumers with goods & services for a profit Chambers dictionary. trade. commercial activity. profession or occupation. a task or errand incumbent or undertaken. the word business means employment. It can be used in different senses In functional sense It is used to the enterprise In a broad sense . a commercial or industrial concern.

Changes or challenges       Business in transition Pressure of competition Immense opportunities Globalization Technology Information .

more specific departmental goals & even individual assignments A goal is defined as an intermediate result to be achieved by a certain time as part of the grand plan Targets are specific goals to be achieved .Business objectives     Objectives form the basis for the functioning of the organization Used broadly they cover long-range company aims.

Importance of objectives        Justify the organization Provide direction Basis for management by objectives Help strategic planning Help coordination Provide standards for assessment and control Help decentralization .

Guidelines for ideal objectives         Participation Clarity Realism Flexibility Consistency Ranking Verifiability Balance .

Factors affecting objectives    Forces in the environment Internal forces The value system of the top executives .

Hierarchy of Objectives .

Types of objectives Economic objectives  Survival  Return on investments  Growth  Innovation  Market share  Quality products & services  power .

as well as the product. the more marketing will become enmeshed in social issues. but for sensitizing business to the social. & the more discretionary the use of its resources. demand of society”  Objectives which protect consumer interest  Objectives which protect the interest of workers  Objectives which protect the interest of the society . Marketing personnel are at interface between company & society.Social objectives Stern points out “ the more educated the society becomes. In this position . the more interdependent it becomes.they have the responsibility not merely for designing a competitive marketing strategy.

Comparison between economic & social objectives Economic objectives are primarily concerned with the economic health of the enterprise Serve economic motive Enterprise oriented Social objectives are concerned with the needs & welfare of the society Serve the interest of the society Social oriented Long term Important both in the short run & long run .

Necessary for survival & growth Necessary for effective discharge of social objectives There is general agreement as to what constitutes economic objectives tangible Justifies the survival & growth Justify economic objectives There are difference of opinion as to what constitutes social objectives Not tangible .

By themselves may benefit society Basic objectives Social objectives reinforce the achievement of economic objectives Economic objectives provide the base for pursuing social objectives Clear & definite May have ambiguity .

The payment of fair & regular dividends to the shareholders 3. The extension.Primary objectives 1. The payment of fair wages under the best possible conditions to the workers 4. development & improvement of the company’s business & the building up of its financial independence 2. The reduction of prices to consumers .

Secondary objectives  To provide bonus for workers  To assist in promoting the amenities of the locality  To assist in developing the industry of which the firm is a member  To promote education. research & development in the techniques of the industry or any purpose approved by the directors & members in general meeting Short-run & long-run objectives Top-down & bottom-up approaches .

Critics of business         Business activity has a corrosive effect on a range of cherished cultural values Business dehumanizes and exploits workers Business harms interests of consumers Degrades nature and the environment Has destroyed handicraft and rendered artisans jobless Causes scams and scandals Multiplies needs and makes people greedy Business leaders bend rules. cut corners. bribe official and challenge existing authority .