SUBJECT

COMMERCE-I

PROF. RUPALI JAIN

30th July 09’
 BUSINESS

DEFINATION
Urwick and Hunt: "Business is any enterprise which
makes, distributes or provides any article or service which
other members of the community need and are able and
willing to pay for.“
 FEATURES

o Economic activity
o Profit making
o Satisfaction of wants
o Risk taking
o Dealing in goods and services
o Continuous activity
o Innovative and dynamic in nature
o Subsystem of the society
o Occupation
o Legal control
 BUSINESS OBJECTIVES

 INTRODUCTION
Every business unit is established in order to
attain certain well-defined objectives. Attainment
of these objectives is the only way an organization
can justify its setting-up and existence. It is very
important that every business unit decides and
pursues a set of well-defined business objectives.

 DEFINATION
McFarland: "Objectives are the goals, aims or
purposes that organization wish to achieve over
varying period of time".
 FEATURES

 Multiplicity of objectives

 Hierarchy of Objectives

 Measurable

 Different types

 Flexible
WHY ARE BUSINESS OBJECTIVES
NEEDED?

 Flexible

 Understandable

 Realistic

 Quantitative

 Time-frame specific
IMPORTANCE OF BUSINESS
OBJECTIVES

 Framing rules,policies and procedures.

 Helps in ascertaining the resource requirement.

 Provides direction to the activities.

A set of well defined objectives enable a firm to

assign duties to the employees

 Provides the basic for measuring and evaluating

employee performance
 Help the managers in taking rational decisions.

 Universal application.

 Justifies the very existence of a company.

ECONOMIC & SOCIAL OBJECTIVES

ECONOMIC OBJECTIVE
 Profit earning
 Creation of customers
 Regular innovations
 Best possible use of resources

SOCIAL OBJECTIVES
 Production and supply of quality goods and
services
 Adoption of fair trade practices
 Contribution to the general welfare of the society
HUMAN & NATIONAL OBJECTIVE
HUMAN OBJECTIVE
 Economic well being of the employees
 Social and psychological satisfaction of employees
 Development of human resources
 Well being of socially and economically backward people

NATIONAL OBJECTIVE
 Creation of employment
 Promotion of social justice
 Production according to national priority
 Contribute to the revenue of the country
 Self-sufficiency and Export Promotion
 GLOBAL OBJECTIVES
 Raise general standard of living

 Reduce disparities among nations

 Make available globally competitive goods and

services
 Here are some examples of objectives of
MNC’s

 To establish, maintain,  To deal in any type of

conduct, provide services articles & things which
of every kind including may seem capable of being
commercial,statistical, profitably.
financial, legal,
management, data
processing  To provide for the welfare
of employees or ex-
. employees of the Company.
 To carry on the business
in all types of electronic
components and
equipment from every
aspects.
 To carry on all kinds of promotion business.
 To construct and develop residential or industrial
colonies for advancement of members &
employees
