IGCSE Economics

Business Objectives

Department of Economics and Business DCS

OBJECTIVES

Broad statements of intent, what we as a business want to achieve.

Broad statements of intent, what we as a business want to achieve.

Most common commercial business objectives:Most common commercial business objectives:

• Profit or sales maximisation. How do we calculate this?

• Growth and expansion.(why do we want to get bigger-list possible advantages here…)

• Market share, market leadership / domination.(again why?)

Also may include:Also may include:

• Customer satisfaction, customer loyalty.

• Quality / value for money.

Other aims concern - Image, environmental/social responsibility. Many may not be profit making by choice….

Private Sector Private Sector

Maximise money raised for cause eg charity

Advance religion, eg local temple (charity)

Relieve poverty eg many relief organisations after the China earthquake

Non-profit making to:Non-profit making to:

Private Sector Private Sector

- Examples

Non-profit making to:Non-profit making to:

Conserve environment eg Greenpeace (charity)

Advance education eg Exam board IB.

Aims of public sector (Government sector) / non profit making organisations:

Aims of public sector (Government sector) / non profit making organisations:

• More linked to society needs rather than owners…

Public SectorPublic Sector

Provide a service to the community eg hospitals

Expand knowledge / appreciation of area eg libraries (local govt.)

- Examples

Public SectorPublic Sector

Relieve poverty eg Conserve environment

- Examples

May be times when business has to change long term objectives and concentrate on short term.

May be times when business has to change long term objectives and concentrate on short term.

The Changing Nature of Objectives

• Size & Legal Status • Ownership• Views of owners / directors /

managers

Factors influencing objectives:

May be times when business has to change long term goals and concentrate on short term objectives eg survival in 2009-10 after global economic crisis.

.

May be times when business has to change long term goals and concentrate on short term objectives eg survival in 2009-10 after global economic crisis.

.

The Changing Nature of Objectives

• Legislation • State of the Economy • Social attitudes • Changes in technology • Competition

Factors influencing objectives: