Objective of Business Organisation

A study of the organization’s objectives helps to understand how it is likely to respond to changes in its environment.
It is often assumed that business organizations will always try to maximize their profits through a combination of maximizing revenue and minimizing costs. The profit maximization objectives must be qualified by a time dimension. A firm that pursuing a short-term profit-maximizing objective may act very differently to one that seeks to maximize long term profit. This may be reflected in a differing emphasis on research and development, new product development and market development strategies. However, the ability of organization to pursue long-term profit-maximizing objectives is influenced by the nature of the environment in which it operates. For instance, an organization operating in a relatively regulated environment such as patented medicines will be in a stronger position to plan for long-term profit maximization than one is operating in a relatively unpredictable and competitive market.
In order to grow a business needs to increase their share of competitive markets. Marketing plans start with the overall strategic business plan of a company, but explain further how specific aims will be carried out. Marketing plans address this through defining product or service offerings, researching target markets, analysis of competition, then strategically placing, pricing and promoting the company offering. For instance, it may cut prices and increase promotional expenditure, accepting short-term losses in order to drive its main rivals (competitor) out of business, leaving it relatively free to exploit its market in the long term.
As an organisation grows, so does the power and responsibility of individual managers in terms of salaries and career development. Growth strategy may appear very attractive to employee not only for their own self advancement but also as an aid to attract and retain high calibre employee. For instance, Google Inc. has been rapidly growing and increasing the firm size which not only provides prospects of career development but also incredible perks and benefits.
In the present business world, ownership and management are in two different hands. The argument has been advanced that managers aim for satisfactory rather than maximum possible profits. The sufficient profit is made to keep shareholders happy and also fell that their money is not misused, managers may pursue activities that satisfy their own individual needs such as a business contract that related to profit performance which provides all kind of welfare that manager deserved. For instance, managers will be getting a better company car when goal achieved.
Most business begin with one main financial objective is to survive and stay in business. A large percentage of new businesses do not survive much beyond their launch. The entrepreneur discovers that the business idea is not viable which lead to the business cannot be run profitably or it runs out of cash. In some of the situation, company has to liquidate stocks to cash in order to pay debts from suppliers, wages, rent and raw material.