A usiness needs profit not only for the existence but also for expansion and diverslflcatlon. The profit Is also a measuring rod for business efficiency. Therefore the businessman should charge a reasonable profit which will be beneficial to both business and society. (b) Production of Goods: Business involves sale or exchange of goods and services for earning profit. So the next objective of business is to produce more goods and sell them to satisfy the needs of consumers. A businessman creates form, place and time utilities and meet the requirements of the society. c) Creation f Markets: Business activity can be sustained only If there are enough people to buy the products and services offered by the Enterprise. Without customers a business cannot survive. Customers collectively constitute the market. Thus the objective of business is the creation of market for its products and services to meet the needs of the customers. (d) Technological Improvements: In business there is cut-throat competition in which businessman try to sell their products by offering quality goods at lower prices.
This is possible when the latest technology is used for manufacturing oods. The businessman should Introduce new designs using new techniques and tools to keep pace with the changing business world. It should alm at Increasing efficiency in terms of “cost per unit of production” or “units produced per day by each employee”. Otherwise it cannot survive long in the market. Human Objectives Business activity can be conducted only through the medium of human beings working as Individuals or groups In organizations.
If the human factor Is overlooked, it will be difficult to achieve Its objectives. Human objectives of buslnessrequlre that workable balance should be maintained among the claims of various Interested groups like employees, shareholders and consumers. Some to the important human objectives are: (a) Welfare of Employees: The employees should be looked upon as human beings. The help in increasing the profitability and should be given a due share in profits in form of bonus, increased allowances or spending money on their welfare.
The best prerequisite for getting the best out of people Is providing a fair wages and other Incentives. (b) Satisfaction of Consumers: The business Is meant for onsumers and their satisfaction should be the main objectives of business. So goods should be produced according to the needs tastes and purchasing power of the consumers. They should be provided with quality goods at reasonable prices. (c) Satisfaction of Shareholders: The management should give reasonable return on the money Invested by the shareholders. At the same time, the business should grow so that there Is capital appreciation also.
The shareholder should also feel that the social Objectives Since business operates in society it cannot survive and grow unless it meets the eeds of the society. For the survival of any business, social objectives are essential. profit should be earned along with service and this concept does minimize the importance of profit. According toHenry Ford. “service first and profit next should be the motto of every businessman. ” Thus, it is an important part of business objectives to fulfill its obligations to the society whose ethical and moral code of conduct should not be violated.
The philosophy of running a business should be in tune with what is considered right by the society. Some of the social objectives of business are as follows: (a) Providing Goods: The business should provide goods and services for benefit of the society. Goods are used to satisfy physical as well as mental needs. Providing goods are used to satisfy physical as well as mental needs. Providing goods and services for society is the first duty of businessmen. (b) Supply of Quality Goods: It is the duty of businessmen to study wants and needs of consumers and provide them with quality goods.
It is necessary that goods and services should conform to some specified standards. The supply of adulterated goods, low quality, unusable or harmful to health will be against business ethics. A business cannot flourish in the long run if it ignores consumers. (c) Proper price: Business should supply desirable goods and services at proper prices. Efforts should be made to reduce cost in order to reduce price. When the price is decreased, demand increase and more people are able to satisfy their wants. (d) Providing Employment: Business activities are the greatest source of employment.