Explore Business Business Search. Explore Blog Reference library Collections Shop. Share: Facebook Twitter Email Print page. Business Objectives Objectives give the business a clearly defined target. The most effective business objectives meet the following criteria: S — Specific — objectives are aimed at what the business does, e. A - Agreed by all those concerned in trying to achieve the objective. The main objectives that a business might have are: Survival — a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
A business may find that some of their objectives conflict with one and other: Growth versus profit: for example, achieving higher sales in the short term e. Alternative Aims and Objectives Not all businesses seek profit or growth. Some organisations have alternative objectives. Examples of other objectives: Ethical and socially responsible objectives — organisations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.
Changing Objectives A business may change its objectives over time due to the following reasons: A business may achieve an objective and will need to move onto another one e. The competitive environment might change, with the launch of new products from competitors. Technology might change product designs, so sales and production targets might need to change. In order to achieve your dream, you need careful planning because most likely nothing will happen by accident.
And even with very careful planning of each step of your entire life, there is no guarantee that you will be successful. The future is uncertain and many unforeseen events may cause you to change your plans derailing you from your original path toward achieving your big aim. Businesses also have the aim which they want to achieve in the long term. It is the statement of what the business wants to achieve through its activities.
It is the general goal of the business. In order to achieve that big aim, every aspect of a business needs objectives. Business objectives are the short-to-medium-term more specific targets which a business organization sets in order to achieve its future aim. Objectives are specific guides, well-defined goals of a business, to reach the general aim. In other words, outcomes or targets that the business wants to gain in order to achieve its aim. For example, if a medium-size local coffee shop aims to become the biggest coffee chain in the country like Starbucks , its business objectives will include: owning the biggest number of coffee shops, having the biggest number of customers, having the largest Product Portfolio and occupying the largest market share.
Based on these objectives, the business can now produce a plan a strategy. This plan will be implemented to achieve the aim through achieving objectives. There are two kinds of innovation in every business a Product Innovation In product innovation, a new product or service or an improved version of existing product is developed.
Product demand starts declining after a span of time. At time stage, the business must introduce a new innovation to create fresh demand for the existing product by introducing new features in it or bring out a new product to sustain in the market. Thus, it is the duty of a businessman to produce and supply products of proper quality to satisfy the expectations of consumers. These industries may be further sub-divided as follows:. Extractive industries supply some basic raw-material that are mostly the products of the soil.
Products of these industries are usually transformed into many other useful goods by manufacturing industries. For the breeding of plants, the seeds and nursery companies are typical example of genetic industries.
Secondary Industries. Secondary industries are concerned with using the materials, which have already been extracted at the primary stage. These industries process such materials to produce goods for final consumption or for further processing by other industrial units. Secondary industries may be further divided as follows :. Manufacturing industries may be further divided into four categories on the basis of method of operation for production :. Engineering and architectural skills are important part in the construction industries.
Tertiary Industries. Tertiary industries are concerned with providing support services to primary and secondary industries as well as activities relating to trade. These industries provide service facilities. As business activities these may be considered part of commerce because as auxiliaries, they assist trade. These are typically financing, insurance, transportation and communication industries. An economic activity Business is considered to be an economic activity because it is undertaken with the objective of earning money or livelihood and not because of love, affection, sympathy or any other sentimental reasons.
Production or procurement of goods and services Before goods are offered to the people for consumption, they must either be produced or procured by the business enterprise. Thus, every business enterprise either manufactures the goods it deals in or it acquires them from producers, to be further sold to the end user.
Sale or exchange of goods and services Business involves transfer or exchange of goods and services for value. If goods are produced not for the purpose of sale but say for internal consumption, it is not a business activity.
Thus, the important characteristics of business is that there should be exchange of goods between the buyer or the seller. Dealing in goods and services on a regular basis Business is a ongoing activity. One single transaction of sale or purchase does not constitute business. Profit earning One of the main purpose of business is to earn profits.
No business can survive for long without earning profit. That is why businessmen make all possible efforts to maximize profits, by increasing the volume of sales or reducing costs.
Uncertainty of returns Uncertainty of return refers to the lack of knowledge relating to the amount of money that the business is going to earn in a given period. Every business invests money to run its activities with the objective of earning profits.
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