Objectives

Objectives are a vital part of IBC, without the objectives the company would not know what they are aiming for and therefore would not achieve any goals. Here are IBC’s main objectives:

Objective 1- Make Money

This is a very important objective, as without making a profit, they would go into losses meaning they have to shut down. Without profits, there would be no pay rises for the labourers and not enough money to buy new technology for faster, enhanced, and efficient production.

Objective 2- Please Customers

IBC are there to please customers, because if they please their customers, they customers may pass on the word about the products of IBC to other people, which would mean more customers, or also the same customer could continue buying from IBC creating a customer relationship.

However, if the customers were not please they would not want business with them anymore. This means if peoples wants decreased, there would be less demand meaning not enough money made. This would reflect on the running of their business.

Objective 3- Job Satisfaction/Security

They want to provide people with jobs so the workers can support their family. However, without the workers, the business would not be able to run.

A good working environment is always a key part in a business. You may think that owners would not care what the conditions are like but this is a very essential thing for them to be concerned about. This is because not only so that the staff is well motivated; if they are pleased with the other employees they are working with, they will work to a higher standard, if not, they may not take a good interest in their work. Also having other kinds of facilities around the IBC plant would inspire the workers. All these result in more high quality and better production. They also care about the staffs’ health etc. Making sure the environment is not polluted; the noise level is not too high. Also, if an employee is admired for their work, they will be pleased ant this will motivate them to continue their good work.

The amount of hours the employees work is another perspective we need to consider as sometimes they may have fixed number of hours that they may not be pleased with, this would affect job satisfaction. IBC operate their factory during the nighttime as well as it is cheaper, so they need to make

sure the employees during those working hours are satisfied otherwise, they may just laze around and not complete their work to a high quality standard.

Objective 4- Increasing Market Share

Any business, including IBC would want to increase market share, not only to be recognised and well known in the market but also to have a bigger share in it as well meaning more income, (profit) which would mean more money for the workers and other shareholders. In order to increase their market share, IBC could extend their business, build factories in other countries, if this was a success then IBC would move to a higher position in the market share.

Objective 5- Survival

This is also a very important objective for IBC, without survival, jobs would be lost, and the business would go into debts. In addition, there would be disappointed shareholders, most importantly, dealerships and suppliers as dealers would have to find new customers, and so would the suppliers, this would result in them having lower incomes then usual until they find new buyers as well.

Objective 6-Profit Maximisation

IBC do not just want to meet the basic targets I have mentioned above, but also want to maximise profits. Only the owners would benefit mainly from this (main shareholders of company). However, the other shareholders in the company would also benefit, as the profit made would be also shared out meaning more income for them, but sometimes the owner thinks that the dividend per share is more important than the actual profit made, as the company’s profit made wouldn’t benefit them as much as their share of the profit.

Objective 7-Increase Sales

AT IBC, generating faster in order to produce the vehicles quicker, would lead to more sales meaning and more money.

 This objective is also a good idea because sometimes it is difficult to know the maximum amount of profit they can make. Therefore, it might be easier to aim for sales growth.

Objective 8- Profit Satisficing

This is where the top shareholders in IBC care more about how many sales made rather than the profit, as IBC would pay higher salaries to the top shareholders.(The owners having enough profit to keep the shareholders happy).

Objective 9-Use finance effectively; Maximizing Production efficiently and use Human Resources effectively

To ensure that finances of IBC are used effectively, IBC make their productions as efficiently as possible and they use the resources carefully, not only considering the environment as they’ll run out one day but also to ensure no money is wasted where it isn’t necessary.

Conclusion:

Considering all the points carefully, I came to a judgement that many of the points are in relation to each other. They are like a chain. One or more cannot to do without another. For E.g. Pleasing customers (OBJ>2), Increasing Market Share (OBJ>4), Profit maximisation (OBJ>6) and Increasing Sales (OBJ>7) and finally using finances efficiently (OBJ>9) would succeed the first and most important objective-‘Make Money’. As if all the objectives mentioned above succeeded, they would automatically be succeeding Objective 1. Therefore, I have concluded that a company cannot run without having objectives, as they would not be aiming for anything. Without that, they would not know how well the business is doing. As if something is wrong, they can look at the objectives and know what is wrong and why, for e.g. if they are not making a profit- this may be due to – no pleased customers (OBJ>2). Objectives = Goals.

The following information shows facts & figures about IBC Vehicles factory:

This Bar Chart shows the profit each company has made per annum. As you can see Shell, again have a large profit (£M) made each year and Body Shop with a very low figure (cannot be seen on chart). IBC is quite high up in the table but still does not have a great amount of profit compared to Shell & B.T. I have shown IBC’s bar in a different colour so it is easier to observe and help it stand out.

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This Bar Chart shows the turnover each company has made per annum. As you can see Shell have a great turnover (£M) each year and Pizza Express with a very low figure. I have shown the IBC bar in a different colour to help it stand out and easier to observe.

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