Business Aims and Objectives

Business Aims and Objectives

• Maximizing profits involves making the highest profits possible for a business to survive, provide financial rewards to owners, and secure future investments.
• Maximizing sales aims to achieve the highest possible sales by increasing the firm's market share.
• Maximizing employee welfare aims to enhance employee satisfaction.
• Social and community aims involve general social contributions like donations and sponsorships.
• A strategic objective represents what a firm aims to achieve in the long run.
• Tactical objectives ensure all strategic objectives are reached and are short-term focused.
• Management by Objectives (MBO) involves setting specific, measurable targets usually for both employees and managers.

Controllable Environment

• Money can be obtained from various sources, and businesses decide when and where to get it.
• Businesses have the option to choose the types and quantities of materials and can change products based on availability of specific materials.
• Equipment is required to assemble materials, and businesses decide whether to use equipment or labor for production.
• Businesses decide to use human labor for production, with human intervention being crucial in decision-making.

Steps in Selection Process

• Application forms and initial screening assess academic background, work experience, and career objectives, matching qualifications.
• Employment tests evaluate an applicant's personality and interests and test general knowledge and IQ, sometimes involving interviews.
• In-depth selection interviews explore more about the applicant's personality, assessing interpersonal skills and filling gaps in the application or resume.
• Conducting background investigations involves checking the validity of information provided by the applicant.
• Physical examinations ensure the candidate is physically fit, eliminate those with contagious diseases, and protect the organization from unjustified medical compensation claims.
• A job offer is made if the applicant succeeds in all selection tests and remains keen on employment.

Different Classes of Consumer Products and Services

• Convenience products and services are for immediate consumption, like snacks, and are bought frequently.
• Shopping products and services are purchased after the buyer compares value, quality, and price from different sellers, such as clothes, shoes, and appliances.
• Specialty products and services require buyers to make special efforts to obtain them, like jewelry, houses, and cars.

Distribution Channels for Consumer Products

• Manufacturers sell directly to consumers, taking full advantage of profits from direct retail sales, such as through direct mail.
• Manufacturers sell to retailers who then sell to consumers.
• Manufacturers sell to wholesalers who then sell to retailers and finally to consumers
• Manufacturers use sales agents or brokers who represent them and sell to wholesalers, retailers, or both
• Retailers and wholesalers sell directly to consumers

Consumer Decision-Making Process

• Need recognition: The consumer recognizes a problem or need.
• Information search: The buyer searches for more information related to the need.
• Alternative evaluation: The buyer uses the information to evaluate different brands or choices.
• Purchase decision: The buyer decides which brand or product to purchase.
• Post-purchase evaluation: The consumer takes further action after the purchase based on satisfaction or dissatisfaction.

Divisions in an Organization

• Finance divisions manage the financial position of the organization, handling business costs and recording all financial transactions.
• Production divisions produce goods according to quality, quantity, and time requirements, with managers organizing labor, equipment, and machinery.
• Staff control quality, responsible for checking, and reporting
• Marketing divisions promote products and services, actively sell to existing customers, and seek out new ones.
• Administration divisions, as operations departments, provide support for all other departments through functions like filing, reception, technology support, security, and cleaning.
• Human resources divisions, service department, provide support and advice, focusing on training, salary structures, health and safety, and industrial relations.

Understanding Key Financial Statements

• Liability is the debt a firm owes to outside organizations or individuals.
• Current liability is debt that must be paid within a year.
• Long-term liability is debt due after a year.
• Owner's equity is the net worth of an individual or business, calculated as assets minus liabilities.