Name of the learner : SIJO ABRAHAM JOHN

Class : TYBBI

Division : A

Roll No : 02

Subject : Turnaround Management

Topic : Introduction to business and objectives of business organization

Date of submission : 6th FEBRUARY 2022

INTRODUCTION
 For a business to continue working, there must be some distinct objectives that
the owners and the managers of the business will work thoroughly to make it
happen and working for that particular objective is what is meant in simple terms
as the business objective.

 There are various kinds of business objectives, the business objective is

defined and being identified in different classes. In this section we will continue
our discussion about ‘Business Objective’ with ‘Economic Objective’ and ‘Social
Objective’ among other objectives of the business.
 MEANING

 The term business refers to an organization or enterprising entity engaged in

commercial, industrial, or professional activities. Businesses can be for-profit
entities or they can be non-profit organizations that operate to fulfill a
charitable mission or further a social cause. Businesses range in scale from
sole proprietorships to international corporations and can range in size from
small to large.
OBJECTIVES
 Business objectives are very specific and measurable in net results. Companies
maintain their objectives as the organizational goals as their organization
expands. Entrepreneurs and business leaders must track the performance with
the objectives to check whether their business is moving in the right direction.

 Business objectives act as the compass for the company, directing how the
organization should allocate its resources, make their weaknesses overcome
with their strengths, and tap opportunities that might be available. Most of the
time, objectives remain the same until any external or internal circumstances
change.

 While business goals describe the company’s end purpose, objectives direct the
directions to reach the goal.
Role of Business Unit
 Though believed that a business has a single objective, that is, to make profit, but
that is not the only objective of business. With pursuing the objective of earning
profit, business units do keep the interest of their owners in view. However, any
business unit will not ignore the interests of its employees, customers, the
community, as well as the interests of society as a whole.

 For instance, no business can prosper the long run unless fair wages are paid to
the employees and the customer satisfaction is given due importance.

 Also, a business unit can only prosper if it enjoys the support and earns goodwill of
people in general. Business objectives also contribute to national goals and
aspirations as well as towards international well-being. Thus, the objectives of
business may be divergent.
Economic Objectives of Business
 Economic objectives refer to the objective of earning the profit
and also other objectives which are necessary to be pursued to
achieve the profit objective. This includes - creation of the
customers, regular innovations and best possible use of the
available resources. Profit is the lifeblood of business, without
this no business can survive in a competitive market.

 In fact, profit making is the primary objective for which a

business unit is brought into existence. Profits must be earned to
ensure that the business survives, its growth and expansion over
time. Profits help businessmen not only to earn their living but
also to expand their business activities by investing into
expansion of business sectors.
ADVANTAGES
 In particular, business objectives allow management
to be more effective when interacting with employees,
which leads to a well-functioning business. One of the
biggest advantages of business objectives is that they
can make proper planning easier. With a clear
objective in mind, developing a plan to achieve the
objective is much simpler.
DISADVANTAGE
• The disadvantages of business objectives include the inability
to please everyone and the potential that workers will exploit
each other in an effort to achieve such objectives. That said, a
firm set of objectives can be beneficial for most businesses and
may lead to consistent success.