Business Objectives
1.3 Business Objectives
Businesses operate with specific goals known as business objectives. Objectives guide decision-making and help managers measure success.
Profit
The financial reward for business activity. Calculated as total revenue minus total costs. Ensures survival, allows reinvestment, rewards owners for risk.
Growth
Expansion of a business over time — increasing production, entering new markets, or increasing market share. Provides economies of scale, stronger brand recognition, improved competitiveness.
Market Share
The percentage of total sales in a market that a business controls. Increasing market share strengthens position against competitors.
Survival
For new businesses, survival is often the most important objective — maintaining enough revenue to cover costs and remain operational.
Corporate Social Responsibility (CSR)
CSR refers to the responsibility businesses have toward society and the environment. Modern businesses are expected to operate ethically, reduce environmental damage, and contribute positively to communities. CSR objectives may include reducing pollution, supporting local communities, improving employee welfare, and promoting fair trade practices.