1.5.1 Business Objectives and their Changing Importance
Instruction :
-
Go through all instructions and course details thoroughly before starting each lesson or activity.
-
Watch the attached video lessons attentively and take clear, organized notes in your notebook.
-
Write all answers for the attached worksheets in your notebook. Make sure your work is neat and properly labeled.
-
Revise your notes and completed worksheets after each lesson to reinforce understanding.
-
If you face any difficulty or have questions, note them down and contact your instructor or course coordinator for guidance.
Click to download the Video Lecture Handout.
Good morning class. Today we’re going to talk about something very important in business – objectives.
Every business, whether big or small, sets objectives. These are simply goals or targets that guide the business in the right direction.
Let’s go through this step by step with simple examples you can relate to.
First, what are business objectives? They are the specific aims a business wants to achieve in a given time.
For example, a bakery might aim to increase its sales by 20% in the next six months.
Objectives give direction, motivate employees, and allow businesses to measure their success.
Now, let’s look at the main types of business objectives.
The first one is **survival**. New or small businesses, or even big ones in tough times, just want to stay alive.
For example, a small restaurant may focus only on covering its costs during a slow season to avoid shutting down.
The second is **profit**. Most private businesses aim to make as much profit as possible.
Profit is total revenue minus total costs. For example, a mobile phone company might try to reduce production costs so its profit margin goes up.
Third, we have **growth**. Businesses often want to grow bigger in size, revenue, or operations.
A clothing brand, for instance, might open new stores in other cities to expand its customer base.
Another key objective is **market share**. This shows how much of the total market a business controls.
For example, a soft drink company may run promotions to win more customers and increase its share of the drinks market.
Then there’s **customer satisfaction**. Happy customers come back and spread the word.
An online store offering free returns and 24-hour support is focusing on customer satisfaction.
We also have **social and ethical objectives**. Some businesses aim to act responsibly and contribute to society.
For example, a cosmetics company may avoid animal testing or use eco-friendly packaging.
Now let’s talk about **social enterprises**. These are businesses that want to make profit but also benefit society.
For example, The Big Issue in the UK helps homeless people earn money by selling magazines.
Unlike traditional businesses, social enterprises reinvest profits into their social goals.
Next, let’s look at **stakeholders**. These are all the groups of people who have an interest in the business.
They include owners, employees, customers, suppliers, government, and the local community.
Each group has its own objectives. Owners want profit and growth. Employees want job security, fair pay, and safe conditions.
Customers want good quality at fair prices. Suppliers want regular orders and timely payments.
The government wants taxes, legal compliance, and jobs for citizens. The local community wants employment and care for the environment.
Of course, conflicts can happen. For example, shareholders may want higher profits, but employees may want higher wages.
This means businesses often need to balance these competing objectives.
Finally, remember that business objectives can change over time.
A start-up might first focus on survival, then shift to profit and later growth.
Changes in the economy, new leadership, or social pressures can also influence objectives.
So class, let’s recap. Businesses set objectives like survival, profit, growth, market share, customer satisfaction, and social goals.
Social enterprises combine profit with community benefit. Stakeholders like owners, workers, customers, suppliers, government, and the local community all have their own aims.
And business objectives are not fixed – they change as the business grows and the environment changes.
By the end of today’s lesson, you should be able to explain the main business objectives, give examples, understand stakeholder objectives,
and recognise why objectives may change over time.
Press “Mark As Complete” Button To proceed
