Objectives

business aims and objectives

growth as an objective

• survival

• increased profit

• increasing market share

• growth

• satisficing

• managerial objectives e.g. working within a budget

• corporate social responsibility

• provide a quality service

different sectors of economy will have different objectives

Private	Public	Third
Maximise profit	Provide a service	Support a cause
Provide a good quality service	Work within a budget	Provide a service
Survive	Operate ethically	Raise awareness of a cause
Operate ethically	Serve the local community	Maximise donations
Maximise sales		Operate ethically
Growth		Survival
Corporate social responsibility		Increase number of volunteers

CSR

Corporate social responsibility (CSR) is when a company aims to act ethically and responsibly to ensure the public perceive them in a positive light.

Examples and benefits of CSR:

• Reducingcarbon footprint can improve a company’s reputation as they are seen to be eco-friendly. It may also attract new customers.

• Creating new safety measures can lead to a business gaining quality and safety awards which can then be used as an effective marketing tool and give the company a competitive advantage.

• Improving working conditions of employees will motivate existing staff and attract new staff to the organisation.

• Recycling, reducing waste and minimising packaging can reduce costs for an organisation and improve their reputations.

manegerial objectives

Managers within a business can often have their own objectives which may conflict with or support the main objectives of an organisation.

• Working within a budget – managers will be given a set budget to which they have to adhere. This may prevent them from meeting some of the objectives of the organisation.

• Increased salary or position – a manager may be aiming to gain a promotion which may help them to meet the main objectives of an organisation. Managers may be aiming to maximise sales to ensure they gain an increase in salary.

satisficing

A company who aims to satisfice will be looking to be just good enough to achieve their other objectives but no more than that. They do not aim to be the best possible but to do the best they can to satisfy stakeholders such as shareholders and customers. This may be due to external pressures such as low economic growth or internal factors such as a lack of finance.

growth

Most businesses within the private sector will aim to grow. In order to survive in a competitive market a business must change and develop over time to keep up with market demand. The larger a business becomes, the more opportunities become available for profit and increased economies of scale. Larger companies are at less risk of being taken over by competitors.