explain the multiple objective of business answer long answer
Answers
Explanation:
Explanation: Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. ... Objectives are needed in every area where performance and results affect the survival and prosperity of business.
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Explanation:
All businesses are directed to the achievement of certain objectives. Since business enterprises are a part of the society, they require multiple objectives. They can not operate successfully in society only with one objective of profit maximisation.
With a single objective, the business managers may neglect all other responsibilities towards customers, employees, investors and society at large. They may even be inclined to exploit various sections of society to get immediate profit.
This may result in the non-cooperation of affected people against the malpractices of business enterprises. Hence they should focus on multiple objectives.
Some of the objectivs are as follows :
(a) Market standing : It refers to the position of business enterprise in the market with regard to its competitors. The business enterprise should work hard to maintain its position in the market.
(b) Innovation : If a business enterprise desires to win the confidence of its customers and goodwill in the market, it has to adopt the concept of innovation. Innovation is an introduction of new ideas or methods in a way something is done or made. In business there are broadly two kinds of innovations.
(i) Innovation in product or service.
(ii) Innovation in the various skills and activities needed to supply them.
(c) Profitability : It refers to profit in relation to capital investment. Every business must maintain minimum level of profitability in order to survive in the market.
(d) Productivity : It is used as a measure of efficiency. It is calculated by comparing the value of output with the value of input.
(e) Physical and financial resources : Any business requires physical resources like plants, machines and offices etc. and financial resources to be able to provide products and services to the end user. Thus, to acquire and use these resources efficiently become very necessary.
(f) Manager performance & development/ Worker performance & attitude : Manager's performance is an important parameter in the success of business. However, this is not possible without the efficient and positive performance of workers. Workers' performance and attitudes determine their contributions towards productivity and profitability of any enterprise.
(g) Social responsibility : Social responsibility refers to the obligation of business firms to contribute resources for solving social problems and work in a socially responsible manner.