Business
The organized efforts of enterprises to supply consumers with goods & services for a profit Chambers dictionary, the word business means employment, trade, profession or occupation; a task or errand incumbent or undertaken; commercial activity; a commercial or industrial concern. It can be used in different senses In functional sense It is used to the enterprise In a broad sense
Changes or challenges
Business objectives
Objectives form the basis for the functioning of the organization Used broadly they cover long-range company aims, more specific departmental goals & even individual assignments A goal is defined as an intermediate result to be achieved by a certain time as part of the grand plan Targets are specific goals to be achieved
Importance of objectives
Justify the organization Provide direction Basis for management by objectives Help strategic planning Help coordination Provide standards for assessment and control Help decentralization
Forces in the environment Internal forces The value system of the top executives
Hierarchy of Objectives
Types of objectives
Economic objectives Survival Return on investments Growth Innovation Market share Quality products & services power
Social objectives Stern points out the more educated the society becomes, the more interdependent it becomes, & the more discretionary the use of its resources, the more marketing will become enmeshed in social issues. Marketing personnel are at interface between company & society. In this position ,they have the responsibility not merely for designing a competitive marketing strategy, but for sensitizing business to the social, as well as the product, demand of society Objectives which protect consumer interest Objectives which protect the interest of workers Objectives which protect the interest of the society
Necessary for survival & growth Necessary for effective discharge of social objectives There is general agreement as to what constitutes economic objectives tangible
There are difference of opinion as to what constitutes social objectives Not tangible
Social objectives reinforce the achievement of economic objectives Economic objectives provide the base for pursuing social objectives
Primary objectives 1. The extension, development & improvement of the companys business & the building up of its financial independence 2. The payment of fair & regular dividends to the shareholders 3. The payment of fair wages under the best possible conditions to the workers 4. The reduction of prices to consumers
Secondary objectives To provide bonus for workers To assist in promoting the amenities of the locality To assist in developing the industry of which the firm is a member To promote education, research & development in the techniques of the industry or any purpose approved by the directors & members in general meeting Short-run & long-run objectives Top-down & bottom-up approaches
Critics of business
Business activity has a corrosive effect on a range of cherished cultural values Business dehumanizes and exploits workers Business harms interests of consumers Degrades nature and the environment Has destroyed handicraft and rendered artisans jobless Causes scams and scandals Multiplies needs and makes people greedy Business leaders bend rules, cut corners, bribe official and challenge existing authority