Chapter 1.3 - Objectives of different types of organisations

Question 1

What are some financial objectives? Explain briefly.

Answer 1

Increase sales - lower price means more sales, marketing campaigns to attract people
Increase market share - demonstrate dominance over competitors, normally only for large
Expand the business - open more outlets, employ more staff, buy another business

Question 2

What are some personal objectives? Explain briefly.

Answer 2

Personal objectives are not normally made public, they are used to motivate the owner.

Question 3

What are some social objectives? Explain briefly.

Answer 3

Some social objectives consist of ..
Community service - sponsorship of events and programs
Provision of employment - small businesses look to keep employing people, not large
Social justice - businesses adopt a set of policies to ensure employees are treated equally
Ecological sustainability - responsible business owners leads to ways to recycle and restore

Question 4

What are the three business objectives for a business?

Answer 4

Financial objectives, personal objectives and social objectives.