What are the Purposes of a Business? Is profit the sole purpose of any Business?
Every business is setup with a sole purpose of profit. It cannot survive if the business does not have a potential to show profit. Other than profit, the main purposes of a Business are listed below:
The main purpose of business are:
• It is to create customers clients in market.
• It is to create customers for selling their products and services.
• It is to create market for redlining and buying of product and services.
• Customers determine the main purpose of the business.
• Customers are the basic foundation of the business and keep their existence in the market.
• It is to be catering to material needs and requirement of the society, individual persons, government institutions, company, firms and enterprise.
• Business should be running within the purview of the legal and general public interest.
• It is the ultimate result of an economic expansion, growth and change of firm.
In general sense, enterprise pursues multiple objectives rather than a one objective. Strategic manager will identify a set of main business objectives. These will be pursued by a large cross-section of enterprises.
Profitability, productivity, efficiency, growth, technological, dynamism, stability, self-reliance, survival, competitive strength, customer services, financial solvency, product quality, diversification, employee satisfaction and welfare and so on are the major objectives of an enterprise.
Enterprises look for balance of these objectives in appropriate and suitable manner. Important business objectives are listed below: