Business Goals • Profitability • Social responsibility • Efficiency • Effectiveness
Profitability• Profit represents amount remaining after all costs are deducted from revenues• Financial reward for risk, innovation and effort• Provides financial base for future growth and development• ‘Not for profit’ organisations do not have profit as an objective – Aim to provide goods and services to particular people within the community – Eg Red Cross
Social Goals• Community service• Providing employment• Social justice• Ecological sustainability
Efficiency• Use of resources (money, time etc) in achieving objectives• An organisation is efficient to the extent that it achieves its objectives at the lowest possible cost, using the minimum quantities of resources.
Effectiveness• Ability to formulate and achieve objectives, or achieve the right outcomes.