- Business objectives are the primary targets that a business sets for itself to achieve its overall mission and purpose.
- Objectives guide the decision-making process and help businesses to stay on track to achieve their desired outcomes.
- There are various types of business objectives that businesses may set, depending on their size, industry, and stakeholders.
- Some of the most common objectives include survival, growth, profit maximization, adding value, and providing a service.
- However, businesses may face conflicts and changes in objectives due to various internal and external factors.
- It is crucial for them to review and update their objectives regularly to ensure they remain relevant and achievable.
- This article will delve into each type of business objective, using specific examples from Zimbabwean businesses, to provide a comprehensive understanding of their importance and implications.
- Survival:
- This objective is especially important for new businesses that are still trying to establish themselves in the market.
- The main aim is to stay afloat and break even, covering all costs and expenses without making a profit.
- For example, a startup in Zimbabwe may set a survival objective for the first year of operation, where they focus on building a customer base and generating revenue to sustain the business.
- Growth and Expansion:
- This objective involves increasing the operations of the business, expanding to other regions or countries, and gaining a larger market share.
- The aim is to increase profits and become a dominant player in the market.
- For example, OK Zimbabwe Limited, a leading retail chain in Zimbabwe, has a growth objective of opening new branches in different cities and towns to reach more customers.
- Profit Maximization:
- This objective is common for businesses owned by private individuals.
- The aim is to increase profits by reducing costs, increasing revenue, and improving the return on investment.
- For example, Econet Wireless Zimbabwe, a telecommunications company, has a profit maximization objective of increasing revenue through offering new products and services and expanding their customer base.
- Adding Value:
- This objective is the difference between the selling price and the cost of inputs used in the production process.
- The aim is to increase the value of the product or service and charge a higher price to the customer.
- For example, National Foods, a Zimbabwean food processing company, adds value to raw materials such as wheat and maize by processing them into finished products like bread, biscuits, and mealie-meal.
- Providing a Service:
- This objective is common for public sector businesses whose main aim is to provide services, create employment, and improve the welfare of the general public.
- The aim is to provide a high-quality service to customers while ensuring that the costs are covered.
- For example, the National Railways of Zimbabwe has a service objective of providing affordable and reliable transportation to the public.
