Business objectives refer to goals that an organization aspires to accomplish over a specific period of time.
In other words, business objectives can be defined as specific statements that contain projections about the growth and development of an organization.
These objectives serve as the basis for all strategic and operational policies adopted by an organization.
In addition, they provide an insight into the existing position of an organization and scope of improvement in the current method of working. Business objectives differ from organization to organization depending upon its size, resources, number of customers served, and financial status. The business objectives of organizations should be quantitative, comprehendible, time-specific, and realistic.
The primary business objective of all organizations is to earn profit. In general terms, profit is considered as an amount of money that is left over from sales revenue after deducting all expenses. An organization needs to earn profit to ensure its long-term survival, growth, and expansion over time.
However, some organizations indulge in malpractices, such as hoarding and black-marketing, to maximize their profit. Such unethical practices can bring high profits for an organization in the short run, but may adversely affect the organization’s reputation in the long term. Therefore, an organization should aim to earn reasonable profits, so that it can cover various economic risks and avoid losses.
Besides earning profit, economists have also suggested various alternative objectives that an organization needs to achieve for its growth and survival. These alternative objectives include sales revenue maximization, growth rate maximization, increase in market share, and avoidance of risks.