Classification of Objectives of Business

Because a business has to balance many needs and goals, it needs multiple objectives — it cannot pursue just one and expect excellence. Objectives are needed in every area that affects the survival and prosperity of the business, must be specific to each area, and also let the business analyse its own performance and improve. The main areas:

• Market standing: Maintaining the goodwill and reputation of the business is essential to succeed. Market standing is the firm's position relative to its competitors; the enterprise must aim to stand on a stronger footing by offering competitive products at reasonable prices and serving customers to their satisfaction, forming a distinct identity.

• Innovation: Innovation is central to growth and gives a competitive edge. It means introducing new ideas or methods in the way something is done or made — it does not necessarily mean making a brand-new product; any modification of an existing product to improve its working is also innovation. There are two kinds: (i) innovation in products or services, and (ii) innovation in the skills and activities needed to supply them. No enterprise can flourish in a competitive world without it.

• Productivity: Productivity is found by comparing the value of output with the value of inputs, and is used as a measure of efficiency. To survive and progress, every enterprise must aim at greater productivity through the best use of available resources.

• Physical and financial resources: Every business needs physical resources (plants, machines, offices) and financial resources (funds) to produce and supply goods and services. The enterprise must aim to acquire these resources as required and use them efficiently. …