1.5.3 business objectives

• objective

  a specific target set by a business
• survival as an objective

  • the business in the first year may just have survival as the objectives
  • the objectives is to reach is break-even point
• profit maximisation as an objective

  • ensures retained profit in the business to make future investments
  • provides rewards for stakeholders such as owners
  • provides a measure of efficiency for management
  • provides data to compare month by month or by year profit - possible to attract new investors
• sales maximisation as an objective

  • some businesses may set their objective as sales maximisation
  • managers find sales figures more satisfying
  • = often found in a sales driven environments like an estate agent or car dealership
• market share as an objective

  • is the % business has, either in revenue or in units sols
  • competitive market
  • very important for investors
• cost efficiency as an objective


  most common objective in transport and construction industries where goods + services make up 70% of the cost of a project

  cost efficiency can be achieved:

  • paying minimum wage to unskilled workers
  • economies of scale
• employee welfare as an objective

  • some businesses seek the harmonious/relations with their workforce
  • employees that are satisfied are loyal + hardworking
  • the business also benefits from an enhanced public image
• customer satisfaction as an objective

  • they will attempt to identify and understand what customers want and then provide this
  • also aim to reduce number of complaints
  • a customer centred approach will:

  1. improve repeat sales
  2. create brand loyalty

  • satisfied customers will tell others improving reputation and word of mouth
• social objectives

  also known as corporate social responsibility or CSR objectives.

  this may involve:

  • reducing impact on environment
  • fair wages in developing countries
  • helping security