Success Criteria:

Introduction to the different types of

BUSINESS OBJECTIVES

Learning Intentions:

By the end of these lessons you should be able to:

• identify

•describe and give examples

•To allocate to specific types of organisations of Business Objectives

Business objectives• Survival• Maximising profits• Growth/Expansion• Increasing market share/market leader• Good reputation/social responsibility• Maximising sales• Satisficing• Providing a service/quality service• Managerial objectives• Customer satisfaction

+Objectives

Objective Description Justification

Survival To continue trading Need to survive or the business would not exist

Maximise Profit To have a higher income than costs

Allows the business to improve/expand

Customer Satisfaction

Make customers happy

Customer loyalty, new customers

Market Leader Biggest business in a market

More customers than competitors

3

+Objectives

Objective Description Justification

Social Responsibility

Behaving in an ethical and responsible way (marketing & operations unit)

Improves the organisations reputation

Satisficing Ensuring that your business operates to a satisfactory position

Not always possible to reach perfection (limited resources etc.)

Managerial Objectives

Their own internal objectives e.g. bonuses

Motivational for the manager to do well

Growth Making the organisation increase in size

Increases sales/profits/reputation/economies of scale

4

Objectives by business sector

Type of business Aims/objectives

Private sector Survival, profit maximisation, growth, increase returns to shareholders, increase market share, maximising sales, managerial objectives, image and social responsibility

Voluntary sector/Third sector

Help others, maximise cash collections, offer a service to the community

Public sector Help people, improve quality of service, cut costs/efficiency/operating within a budget, raise revenue, provide a service,