Objectives of Business: According to the traditional concept the main purpose of business was to earn profit but in the modern -competitive age and according to Urwik, earning profit cannot be the only aim of business. To serve society is also regarded as a prominent aim of business.
According to William G. Scott: Objective of business must be the satisfaction of human needs because the right to conduct business is also given by an organised society.
A businessman runs his business to satisfy various groups of society to achieve the following objectives:
(a) Profit Objective: According to Peter. F. Drucker, “ The aim of any business is not to earn maximum profit but earn to such an extent that is sufficient to bear its inherent risk or to save oneself from the loss.” Therefore to earn profit is a basic need for the continuance, development and expansion of the business.
The following are the main objectives for the fulfilment of this economic aim:
1. To earn satisfactory profit.
2. To innovate the business methods.
3. To improve quality of goods and services so that the customers may get better product at lower prices.
4. To look for new markets and to create new customers.
5. To develop and expand business activities.
(b) Service Objective: Service along with profit has become the main aim of the business.
For fulfilling this aim the main activities are to:
1. Provide goods as per needs of the customers.
2. Supply better quality goods at fair price.
3. Avoid profiteering and unfair trade practices.
4. Provide after sale service.
5. Avoid false and misleading advertisements.
6. improve new techniques.
(c) Human Objective: The humanistic aim of a businessman is to deal with various human groups in a proper manner, to protect their interests and to establish proper adjustment among them.
In order to achieve this humanistic aim one has to do these activities:
1. Humanistic behaviour with workers and labourers.
2. To provide adequate salary and good working conditions.
3. To manage labour welfare and social security.
4. To settle the grievances of workers as early as possible.
5. To provide opportunities of promotions and development of employees.
6. To ensure proper returns to the investors.
7. To ascertain the security of the invested capital.
8. To be cooperative towards the suppliers and to pay proper price for their material.
9. To make available maximum opportunities for employment.
10.To keep in view national interests and priorities.
