Let’s check next module, explain the objectives of business. Objective is what? End result of the business activity where a business unit wants to reach, your aim and your target. In the earlier days, profit maximisation was the aim, right, of every businessman. But today, business concentrates on profit as well as other factors like society, government and environment for its input , men, money, material and output needs customers to buy the finished goods, output the finished products. This is for achieving other objectives in order to survive in today’s competitive world.
So, let’s check the definition given by Henry Ford, ‘Business is not mere money chasing but it also aims at serving the community’, right, the society, doing something for society.
Let’s check, objectives of business, right. First, economic objectives, next social objectives. So let’s start with economic objectives, a business organisation cannot be called as a business organisation unless it has economic objectives. So, let’s check the first economic objective of earning profit, right. So, profit earning may not be the sole, single aim of today’s business, but still it is an important and basic aim of every business. Herein, I have purchased this toy for 100 from a manufacturer. I will have to sell this for minimum 120, so that I earn Rs. 20 as profit. So, profit is required for the survival of business, right, for growth of business and meeting the family needs of businessmen. So, that business unit produces goods and services, remember that which are required by public and also allow to earn profit.
Let’s check next, creation of customers. The very existence of a business depends upon the number of customers it has created in the market. Particularly, if the competition level is high, a business organisation needs to work hard to create customers. And creating customers by supplying right goods and services at right time and right price. And tomorrow I want to increase, that’s an example, my customer base, so I will have to advertise my product on television, you can see. He is advertising his products on the television to increase his market, his customers.
Next, innovation, a business unit cannot keep offering same product for a long time, will you buy it, no, so external factors like fashion, purchasing capacity, technology keep on changing. So, even the product should change. If a business organisation wants to hold customers and create new customers then it has to spend money on research and development, market survey, use of technology etc., and provide new novelties to customers and can approach them in an innovative way. Owner of Taggi Noodles, now, ‘hey, listen I want to try something innovative product to attract more customers’ he is asking his friend and the friend replies, ‘you can introduce Taggi soup noodles or Taggi vegetable masala.’ You can check out new products, innovative products. Noodles are doing well in the market but now I need to try something innovative to increase my profits, right, kids.
Best possible use of resource, now most of the resources are scarce we cannot afford to waste those scarce resources. So we go for optimum use, that’s why maximum use of resources. Ultimately leads to increasing profit. Here you can see, right, designers’ workshop. Dress designers’ workshop, right, making some designer clothes and leftover clothes, right, all those cut pieces are reused for making bags. So this is best possible use of resources.
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