MDU BBA NOTES
Objective of Business
Objective of Business
Business objectives also need to be aimed at contributing to national goals and aspirations as well as to international well–being. Thus, the objectives of business may be classified as:-
A. Economic Objectives
- Creation of customers
2. Regular innovations
Innovation means changes, which bring about improvement in products, the process of production, and the distribution of goods. Business units, through innovation, are able to reduce costs by adopting better methods of production and also increase their sales by attracting more customers because of improved products.
3. Best possible use of resources
men and have the cash to meet day–to–day expenses. Thus, business activities require various resources like men, materials, money, and machines. The availability of these resources is usually limited.
can achieve this objective.
B. Social Objectives
Social objectives are those objectives of the business, which are desired to be achieved for the benefit of society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its
welfare. No activity of the business should be aimed at giving any kind of trouble to society.
Social Objectives based on Social activities:-
Production and Supply of Quality Goods and Services
Adoption of Fair Trade Practices
Contribution to the General Welfare of the Society
C. Human Objectives
Human objectives refer to the objectives aimed at the well–being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped, and deprived of proper education and training. The human objectives of business may thus include the economic well–being of the employees,
social and psychological satisfaction of employees and the development of human resources.
Human Objectives based on human activities:-
Economic Well–being of the Employees
medical facilities, housing facilities, etc. Through this, they feel more satisfied at work and contribute more to the business.
Social and Psychological Satisfaction of Employees
Development of Human Resources
The well-being of Socially and Economically Backward People
D. National Objectives
Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunities to its citizen, earn revenue for its exchequer, become self–sufficient in the production of goods and services, promote social justice, etc.
The following are the national objectives of the business:-
Creation of Employment
One of the important national objectives of the business is to create opportunities for the gainful employment of people. This can be achieved by establishing new business units, expanding markets, widening distribution channels, etc.
Promotion of Social Justice
As a responsible citizen, a businessman is expected to provide equal opportunities to all persons with whom he/she deals. He/ She is also expected to provide equal opportunities to all the employees to work and progress. Toward these objectives, special attention must be paid to weaker and backward sections of society.
Production According to National Priority
Business units should produce and supply goods in accordance with the priorities laid down in the plans and policies of the government. One of the national objectives of business in our country should be to increase the production and supply of essential goods at reasonable prices.
Contribute to the Revenue of the Country
Business owners should pay their taxes and dues honestly and regularly. This will increase the revenue of the government, which can be used for the development of the nation.
Self–sufficiency and Export Promotion
To help the country to become self–reliant, business units have the added responsibility of restricting the import of goods. Besides, every business unit should aim at increasing exports and adding to the foreign exchange reserves of the country.
E. Global Objectives
Previously India had a very restricted business relationship with other nations. There was a very rigid policy for the import and export of goods and services. But, nowadays due to liberal economic and export–import policies, restrictions on foreign investments have been largely abolished, and duties on imported goods have been substantially reduced.
The following are the Global Objectives of the business:-
Raise the General Standard of Living
The growth of business activities across national borders makes quality goods available at reasonable prices all over the world. The people of one country get to use similar types of goods that people in other countries are using. This improves the standard of living of people.
Reduce Disparities among Nations
Businesses should help to reduce disparities between the rich and poor nations of the world by expanding its operation. By way of capital investment in developing as well as underdeveloped countries it can foster their industrial and economic growth.
Make Available Globally Competitive Goods and Services
Businesses should produce goods and services which are globally competitive and have huge demand in foreign markets. This will improve the image of the exporting country and also earn more foreign exchange for the country.