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organisation. They may affect the chances of success, but only in the
long term. Examples include administrative efficiency and labour
turnover rates.
Profit maximisation.
Profit maximisation one of the most important objective for companies which
are owned by shareholders. Profit, at is simplest, refers to the extent to
which revenues exceed costs, so profit maximisation occurs when the
difference between sales revenue and total cost is greatest.

Survival.
Survival is an important objective for many businesses. It is particularly
important when businesses are vulnerable such as:
• during their first few years of trading
• during periods of recession or intense competition
• at a time of crisis such as a hostile takeover.
Most recently established businesses have survival as an objective.

Increasing sales or market share.
Growth increases the scale

of a business, resulting in higher levels of
output and more sales. Many businesses pursue growth strategies because
their managers believe that this is essential for survival. If a firm
grows, it might be able to attract more customers, earn higher profits and
begin to establish itself in the market.
Growth offers:
• increased returns for the owners of the business
• higher salaries for employees of the business
• a wider range of products for the business’s existing and potential
customers.
Growth can be important target for managers. It is increasingly common for
managers’ pay packages to be a combination of shares and salary.

Providing social or community service.
A number of organisations provide services to the community. These
organisations are part of the public sector – they are managed, directly or
indirectly, on behalf of the government – yet they are a form of business.
Their overriding objective is to provide the best positive service to the
local community.

Charitable and non-profit objectives.
Charities have a high profile in the UK. Charities have a number of clear
objectives:
• to rise the public’s awareness of the cause that thy support.
• To rise funds to support their projects.
Charities trade with the intention of earning as much revenue as possible
to spend on their particular causes.

Producing high quality products.
Just as many businesses seek to provide high quality service, a large
number of businesses also have the provision of high quality product as an
important objective. Acquiring reputation for top quality can allow
businesses to charge a premium price and to enjoy higher profits.
Reputations for supplying quality products are jealously