Business objectives

When a sole trader sets up they may have some unstated aims or objectives - for example to survive for the first year. Other businesses may wish to state exactly what they are aiming to do, such as Amazon, the Internet CD and bookseller, who wants to “make history and have fun”.
So, the aim of business objective is to investigate the competing aims of business in private and public sectors.

Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.

Business activity:
- primary sector (extraction of row materials from the Earth - fishing, quaring);
- secondary sector (procesing of row materials into finished or semi - finished products - manufacturing);
- tertiary sector (servicies industries - transport, wholesaling, communication, relaiting);
- quartemary sector (health education, research, leasure).

Objectives of private sector business:

• profit;
• survival;
• share price;
• social issuses;
• market power;
• sales and sales revenue;
• efficiency;
• quality and inovation;
• image and reputation.
  
  Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
  Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours
  
  Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
  Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.

Public Sector: bussiness activity owned, financed and controled by the state through government or local authorities.

- Government - key departament set policy and monitor implementtation.

- Local authorities - Country Councils, District Councils, Parish Councils.

- Health Trust.

- Public Corporation - BBC

Range of Business Offered by the public sector:

• parks;
  
• roads;
  
• univercity;


• street lighting;


• museums and art;


• schools;
  
• environmental health;


• trade standarts;


• cemeteries.