Q.

Case (Dipak Bharali, Sualkuchi): In Sualkuchi, a silk-weaving village in the Kamrup district of Assam, the weft-insertion (buta) stage of weaving was a slow, exhausting, hand-done step that capped how much cloth a weaver could produce. A young local weaver, Dipak Bharali, ran a modest handloom business but was unwilling to grow only by buying more and more looms. Recalling boyhood games with magnets and simple electro-magnets, he set out to build a machine to automate buta weaving. After about 80 attempts he succeeded, creating an eco-friendly device made from recyclable materials which he named 'Chaneki' — it let the machine run roughly 40 times faster than manual weft insertion. Many weavers adopted it, sharply raising their output and quality. His grassroots innovation was recognised by the National Innovation Foundation (NIF).

Which objective of business is discussed in the above case?

An objective is the starting point of a business — all that business people want in return for what they do. It is commonly believed that business exists only for profit, since every firm tries to earn the excess of revenue over cost. Profit certainly matters: it is a source of income and of finance for expansion, it indicates efficient working, it reflects society's approval of the firm's utility, and it builds reputation.

But a business is part of society and must pursue multiple objectives to survive and prosper. Over-emphasising profit alone is dangerous — it can lead managers to neglect customers, employees, investors and society, inviting opposition that may cost the business its profit altogether. Objectives are therefore needed in every key area:

• Market standing — the firm's position relative to competitors, held by offering competitive, reasonably priced products.
• Innovation — introducing new ideas or methods, whether in products/services or in the skills to supply them; even improving an existing product counts. It is central to growth and gives a competitive edge.
• Productivity — comparing the value of output with the value of inputs, used as a measure of efficiency.
• Physical and financial resources — acquiring and using plant, machinery and funds efficiently.
• Earning profits — a reasonable return on capital employed, vital for survival.
• Social responsibility — contributing resources to solve social problems and acting in a socially desirable way.

Balancing these objectives is essential for the firm's sustainable, long-term growth.