1.4 Business objectives

What is a business objective

Specific goal or aim that a business is striving to achieve

provides direction purpose and motivation to be successful

Make profit

Amount of money left over when expenses is subtracted from revenue

Increase market share

Business having larger number of sales compared to competitors

Improve efficiency

How well a business is able to utilise resources (natural, labour, capital)

Improve effectiveness

How successful a business has been in achieving objectives

performance compared against past and expected results

Fulfil market need

Business ability to meet/satisfy needs and wants of customers

Fulfil social need

Business being able to improve society in a way, shape, or form

Meet shareholder expectation

shareholders are part owners of public and private companies

shareholders expect to see a return on investment with dividends and capital growth