Multiple Objectives of Business
Such mission statements will have to be translated into objectives and targets. Objectives and targets have to be specific in every area and sphere of business. For example, sales figures have to be set, the amount of capital to be raised has to be estimated and the target number of units to be produced should be defined. The objectives define what the business is going to do in concrete terms that enable the business to analyze their own experience and as a result improve their performance. Objectives are needed in every area where performance and results affect the survival and prosperity of business. Some of these areas are described below:
- Market standing: This objective is an offshoot of the profit maximization objective. Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at standing on stronger footing in terms of offering competitive products to its customers and serving them to their satisfaction.
- Innovation: Innovation is the introduction of new ideas or methods in the way something is done or made. Innovation is an important factor in the survival of the business entity. These days it is more of a necessity than a mere objective. Innovation may be brought about not just in the products or services but also in the way in which they are served to the market and in the way in which the business operations are run.
- Productivity and Efficiency: This objective is central to profit maximization. Profits can be reaped only if the rate of earning revenue is more than the rate of incurring costs. Efficiency can be expressed as achieving the maximum possible with the minimum available. The maximum output which can be achieved with the given level of inputs has to be aimed at. This can be ensured by minimizing wastages in raw materials, man-hours and money.
- Goodwill and Social Responsibility: Every business entity must realize that its existence is not just supported by its owners and promoters but by its stakeholders like investors, financiers, customers, employees, suppliers and the people living in the immediate environment of the entity. This attitude must be reflected in its understanding the needs of its stakeholders and respecting their interests and functioning in the best interests of the stakeholders. This will eventually spread goodwill among its stakeholders. It must also realize that it is a part of the society and that it must return to the society what it takes from it. It must do so by doing its part in uplifting the economic, social and environmental aspects of the region it functions. Many corporates like Tata Sons Limited, Ballarpur Industries Limited (Bilt) have exhibited their conviction to social responsibility by serving the causes of rural development and the like. They bring out their corporate social responsibility (CSR) plans to the public and involve the public in their endeavors too. Recently, the Jaagore initiative by Tata Tea Limited has won the company many accolades and has also brought about civic awareness among the public.