What are the concepts of Business aims and objectives?

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Concepts of Business aims and objectives

Mission statement

A mission Statement summaries the purpose of an organization (usually a company) by stating what the organization stands for. The mission statement can sometimes be expressed or expended in the form of a vision statement for the organization. The mission statement therefore gives people an idea of why the organization exists and what it seeks to achieve. As a result , all stakeholders –groups with an interest in the organization, such as employees, manager , owners , suppliers, customers and the local community – can  understand (and follow) its goals and objectives. The mission statement therefore shows the core purpose of business, i.e. what it stands for.

Key words

*Mission statements can be found on various enterprise websites.

*Our Vision: To be the most innovative business in the world.

Business Aims and Objectives

Business aims indicate what the organization wants to achieve in the long run. These aims may have both commercial and social influences.

Commercial Aims link closely to the business owners, showing what they want from the business. An established and successful company is likely to have business aims such as making a profit expanding, and selling quality goods, whereas the main aim of a small, recently set up one –person business is likely to be surviving its first year.

Key Words

The private sector also includes social enterprises.

Businesses in the Private Sector, such as companies and franchises that are set up to make profits for their owners, have various aims. Their owners will want them to survive in the very economical world in which they function. If losses are made in the short term, these may be put up with in the hope that business will improve in future. They may also have the aim of gaining a larger market share.

Growth is an aim closely linked to market share and to survive larger businesses are more likely to survive by gaining economies of scale and they will have more control of the values they custody and of their market in overall.

Entrepreneurs are in the private sector to make a profit. This profit motive encourages people to either invest in existing businesses or to establish themselves in business, perhaps on their own or in partnership with someone. By growing and increasing its market share, the business is more likely to make acceptable profits for its owners.

Key Words

The entrepreneur may have a personal desire to see the business grow.

The main aims in the private sector

Key Words:

There are close links between the aims of business.

In Addition to the private sector, the India has organizations in the following Sectors:

*Public sector- the part of our economy involving the work of central and local government organisations.

*Voluntary Sector: also called the nonprofit sector or ‘the third sector’ in our economy. Examples include charities, volunteer community organizations and religious organisations.

Many private sector businesses, and organisations in the public and voluntary sectors, have social aims that they have established to benefit the local community or society in general.  For example they might set an aim to create local jobs, or to be more environmentally friendly, organisations that provide community services (such as schools) are likely to have such aims. These organisations might aim to improve the efficiency of the services rather than make a profit, although the need to make profits or surpluses might influence these “efficiency” aims.

Key words

*(Department for work and pensions) we are promoting work as the best form of welfare, helping more people into work and supporting those who can’t work.